Five Star, League Reach Deal to Form Government in Italy After All

Five Star, League Reach Deal to Form Government in Italy After All

Neither of the two parties forming Italy's coalition government - the anti-establishment Five Star Movement and the ultranationalist League - had campaigned on exiting the single currency, and Mattarella suggested he was acting in the country's interests by vetoing Savona.

If Mr. Savona was a poison pill that Mr. Mattarella would never accept, his nomination essentially forced new elections that could send Mr. Salvini back to government as the prime minister of a broad center-right coalition with former Prime Minister Silvio Berlusconi.

Cottarelli would appease financial markets but his administration may not get sufficient parliamentary support, meaning such a cabinet would remain in office as a caretaker for some months until a new round of elections is held.

The leaders of two populist parties in Italy are meeting in Rome amid revived prospects for a political government after their first attempt failed on their choice of a euroskeptic economy minister.

On Thursday evening, the party leaders presented the president with a reshuffled Cabinet that would make it hard for Mattarella to reject them a second time.

The parliamentary election, held on March 4, failed to produce a clear victor but saw support for traditional parties collapse.

The possibility that the 5-Star government and the League could come up with a government acceptable to Italy's president buoyed financial markets, despite their eurosceptic views.

Italian President Sergio Mattarella is ready to appoint a new premier, but he's still waiting on a signal from the populists who denounced him as an enemy of democracy.

According to the parties, the League's Salvini will lead interior ministry in the would-be cabinet while Di Maio of the 5-Star will take portfolios of labor and industry under a newly-created ministerial position.

More news: Trump jabs Dems after Obama-era immigration photos go viral

New elections are now considered the most likely outcome of the political saga, sparked by an inconclusive poll in March.

The anti-establishment Five Star Movement and far-right League party agreed to restart coalition negotiations after their initial bid to deliver Italy an anti-austerity, nationalist government collapsed over the weekend.

President mattarella said he could not appoint the eurosceptic paolo savona to the post, citing concern from investors at home and overseas, and tasked prime minister cottarelli with forming a government instead.

"My call [on the president] is as follows: Mattarella, please give us the date of the vote, and then the Italians will make a fair decision on what has happened", Salvini said at a rally in Pisa.

Just a few hours later their chosen prime minister Giuseppe Conte, a little-known law professor who belongs to neither party and has not been elected, presented his list of ministers after receiving his second mandate in eight days. "It's a lie invented by Mattarella's advisors", Di Maio said in a live video on Facebook.

The timing of polls is already the subject of heated debate, with the centre-left Democratic Party saying they should be held in July while the League says they should take place after the summer holidays.

In the March election, M5S came with slightly over 32 percent of the vote. They also want to lift sanctions against Russian Federation and for Italy to move closer to its president, Vladimir Putin, who once said he did not need to meddle in the Italian elections because it was all going his way.

Meanwhile ex-IMF official Carlo Cottarelli, who had been waiting in the wings as a possible stopgap technocrat premier to lead Italy to new elections at the end of this year, handed back his mandate, paving the way for the new executive which could be sworn in as early as Friday.

Related Articles