(ANSA) - ROME, JUN 30 - There is tension between the two biggest parties supporting Premier Giuseppe Conte's government, the 5-Star Movement (M5S) and the Democratic Party (PD), over whether Italy should apply for funding from the European Stability Mechanism in the wake of the coronavirus emergency.
The PD is in favour of taking up the option to obtain dozens of billions of euros from the bailout fund at zero interest.
But the M5S is against this, fearful that use of the fund could come with strings attached, even though the EU says there will not be any as long as the money is used for health spending.
Economy Minister Roberto Gualtieri, a PD member, has been trying to mediate.
"We can examine all the pro and cons with the M5S experts when the time is right," he said.
In an interview with Tuesday's edition of La Stampa, meanwhile, Foreign Minister and M5S heavyweight Luigi Di Maio called for a "profound fiscal reform starting from (income tax) IRPEF".
(ANSA).
Tension between PD and M5S over whether to use ESM
Di Maio says fiscal reform should start with income tax