Will Italy form a populist government in the next few days? That is the question on everybody's minds here in Rome and elsewhere in Europe. In the March general election, the anti-establishment Five Star Movement and the far-right League scored big gains, but they failed to win enough seats in parliament to govern by themselves. Now they are contemplating a deal.
If they finally reach an agreement, perhaps over the weekend, it would mark a big, big political upheaval for Italy. Both the Five Star and the League have vowed to defy Brussels on everything from economic policy to immigration rules, to sanctions against Russia. The question is, would they follow through, and how? The impact on markets could be very destabilising. What happens in Rome over the next few days could have big implications for the EU's political future.