The prospect of Italy being governed by the eurosceptic Northern League and Five Star Movement rattled the country’s debt markets this week. Snap elections are likely after Italy’s president by vetoed its choice of finance minister.

The partners’ starting point would be to tear up Eurozone fiscal rules and demand a write-off of Italian bonds held by the European Central Bank. With their nuclear option of leaving the euro looming behind it, the clash puts the Eurozone’s power brokers, and the ECB in particular, on notice that concessions will be expected by whoever ends up governing Italy.