German Chancellor, Angela Merkel, has ruled out debt relief for Italy in order not to create the impression that the single currency euro bloc is a debt-sharing group

She was quoted in a newspaper interview that the principle of solidarity among members of the euro zone should not turn the single currency bloc into a debt-sharing union.

Merkel told the Frankfurter Allgemeine Sonntagszeitung in an interview to be published on Sunday that she would “approach the new Italian government openly and work with it instead of speculating about it intentions.”

It would be recalled that yesterday, Italy swore a populist coalition into power, ending months of political uncertainty that hit global markets in the last week.

The newly designated Prime, Minister Giuseppe Conte, is expected to lead Western Europe’s first anti-establishment government with the aim of cutting taxes, boosting spending on welfare and overhauling EU rules on budgets and immigration.

Available data from Eurostat indicates that Italy accounts for 15.4 percent of the bloc’s GDP but also carries the burden of 23.4 percent of the euro zone’s public debt.

Conte, had while reading the list of ministers after accepting to serve as Prime Minister told reporters in a brief statement that “we will work with determination to improve the quality of life of all Italians.”

Last week, the global financial markets plunged as a second election dominated by a debate on Italy’s future in the single currency zone seemed likely to take place.