REPEAT: MNI: Italy Renzi Separatists Could Ally With 5 Star

Repeats Story Initially Transmitted at 08:30 GMT Mar 1/03:30 EST Mar 1

--Democrat Breakaway LEU Group Could Hold Key To 5-Star Government

By Silvia Marchetti

     LONDON (MNI) - Italy's new leftist Free and Equal party (LEU) could ally

with the anti-establishment 5-Star Movement to help form a governing coalition

after Sunday's election, MNI understands.

     With only a few days to go until the vote, LEU, the anti-Renzi dissidents

who peeled away from the Democrat Party, are the only grouping among all Italian

parties running for election not to dismiss a potential alliance with 5-Star.

     "As long as there is real, solid convergence on our key program priorities

-- mainly jobs and welfare -- we are ready to sit down and talk on possible

alliances with most parties, including 5-Star, but not with Silvio Berlusconi's

centre-right coalition," a spokesman for the Free and Equal party told MNI.

     As long as the potential allies are willing to focus on the creation of new

jobs through a pick-up in the use of fix term contracts, and the relaunching of

public and private investments, the door is even open to 5-Star, he added.

     "Our goal is to push Italy to the front of the European stage by boosting

investment, in which we currently trail behind other main EU countries", added

the spokesman.

     --POLICY, NOT POSITIONS

     What currently unites Free and Equal and 5 Stars is not just their crusade

to support employment levels and a more efficient welfare, but also their

political post-vote strategies. Both pledge to build potential alliances only

based on common goals and 'content', not on mere tactics to reach the 40% of

votes necessary to form a new government.

     "We are not interested in sharing and distributing ministries, top

positions and departments. We demand a clear will to pursue along the rightful

path to better this country. A mere game of puppets is not our goal," the LEU

spokesman said.

     In a recent interview with MNI, LEU co-founder Roberto Speranza said it was

crucial to scrap Renzi's Jobs Act reform, which he felt had harmed the labour

market, and to give workers more rights against lay-offs. Speranza also stressed

that "any kind of alliance, built on mere electoral alchemies", would be

short-lived as it would hinder governability in the long-run.

     The 5-Star movement share LEU's position. In the vote's day-after, if the

party will win the highest share of votes but will not have secured the required

majority, it will launch a round of talks with all available parties.

     --5-STAR TALKS

     Five-Star have also said they are prepared to talk to all parties if they

fall short of a governing majority, but any potential partner must pledge they

will accept 5- Stars' governing objectives.

     Danilo Toninelli, 5- Star leader in the Lower House, stressed that "first,

we need to see if we do get the right amount of votes. If we do, we'll move on

alone." 

     "If we don't, we are willing to discuss potential scenarios with all

political forces. Nobody is excluded, as long as partnerships are based on

program priorities and not mere moves just to get to power," he added.

     "We will be strict in applying a code of conduct. Given we do not trust any

party, it's crucial that our potential allies after Sunday's vote officially

bind to our program before we form a cabinet, and not afterwards. It's a matter

of loyalty and respect to our voters," said Toninelli.

     Analysts have voiced concern over a "dangerous convergence" between the two

parties. The 5 Star currently polling between 27% and 30%. The anti-Renzi LEU

group might get up to 8% of votes -- draining significant support from the

mainstream Democrats, -- which, combined, could put them close to the 40%

threshold required to form a government.

     An alliance between the two groups would be a major blow to Renzi. The LEU

party is led by Pietro Grasso, the current Senate leader, Italy's second-most

important constitutional figure after the head of state. Grasso, confident of

his own credibility, has repeatedly argued that his group is set to play a

significant role in framing possible post-vote alliances.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com