NAPLES, Italy — The European Union is trying to head off what it fears is another Greek-style financial crisis in the making.After Italy pledged to push through a big-spending budget promised by its newly elected populist leaders, the EU rejected the plan and has threatened unprecedented sanctions, to keep Italy's debt in check. The European Commission says the nation’s proposed 2019 spending plans will boost debt and put it at risk of “sleepwalking” into a crisis like Greece's, for which the EU would ultimately be responsible.But Rome’s government, a coalition between far-right The League (La Lega) and the populist Five Star Movement, wants to honor its pre-election promises with giveaways such as scrapping an increase in the retirement age and issuing a guaranteed monthly income of $900 for the poorest families."We will respond politely as always, but we won't back down," said Lega strongman Matteo Salvini, the deputy prime minister.The new Italian leaders have vowed to "end poverty" — trebling the previous government's planned budget deficit in the process — and appear to have popular support at home.“Now we are putting our hope in these new politicians,” said Maria Cacialli, a pizzeria owner in the Five Star stronghold of Naples. “We look at them and we see generals, our captains, and we want them to attack in the name of the people and bring us victory.”We talked to struggling locals about their expectations under the new government.This segment originally aired November 21, 2018 on VICE News Tonight on HBO.
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