ROME: Italian Prime Minister-designate Giuseppe Conte has failed to form a coalition government and resigned after President Sergio Mattarella vetoed his choice of economy minister.

Conte and Mattarella had met on Sunday to discuss officials selected by the anti-establishment 5 Star Movement and the rightist League to comprise the new government cabinet for Italy, which has been without a government for 84 days, reports Efe news.

The coalition had wanted to place 81-year-old economist Paolo Savona in charge of Italy's economy, although the former industry minister has been a key figure in questioning Italy's participation in the eurozone and the budgetary restrictions the European Union requires of its members.

Mattarella expressed his doubts about Savona although the 5 Star Movement and the League refused to back down from their choice, thus creating a standoff, given that Italy's president must approve a government's ministerial picks.

Mattarella ultimately refused to back the so-called "euroskeptic" for the economy portfolio.

In response, the 5 Star Movement chief Luigi di Maio announced that the party will launch within Parliament a move to oust Mattarella for having impeded the formation of the government by vetoing Savona and refusing to sign the list of ministers presented by the coalition.

Mattarella's decision sparked an unprecedented institutional crisis, with strong opposition being mounted by the 5 Star Movement and the League, which garnered more than 50 per cent of the votes in the March 4 national elections.

Other political forces, however, citing his constitutional presidential prerogatives to protect Italian markets and savers, have rallied to Mattarella's defence.

Conte, a law professor who had been named as the coalition's prime minister, resigned, telling reporters that he "gave the maximum effort, attention, to carry out this task with the full collaboration" of both the 5 Star Movement and League. </s> Italy's president on Wednesday approved the nomination as prime minister of little-known lawyer Giuseppe Conte, who said that he wanted his government to "confirm Italy's place" in Europe and the rest of the world.

"The President of the Republic has tasked me with the role of forming a government," Conte said to reporters after leaving a nearly two-hour meeting with President Sergio Mattarella.

 

 Conte must now finalize his cabinet, which has been the subject of days of tough negotiations between the anti-establishment Five Star Movement and the far-right League coalition that makes up the proposed government.

 

 The list of ministerial candidates must then be endorsed by head-of-state Mattarella before it can seek parliamentary approval.

 

 Conte's appointment could bring an end to more than two months of political uncertainty in the eurozone's third-biggest economy.

 

 The Five Star-League alliance's eurosceptic stance has alarmed senior European officials, but Conte sought a more conciliatory tone towards Europe when speaking to journalists at the presidential Quirinal palace.

 

 "I'm aware of the necessity to confirm Italy's place, both in Europe and internationally," he said.



 Conte is pictured speaking to Italian press. Photo: Vincenzo Pinto/AFP

 

 "My intent is to give life to a government of the people that looks after their interests. I'm ready to defend the interests of Italians in Europe and internationally, maintaining dialogue with European institutions and representatives of other countries."

Conte, who hails from Five Star, said that he would present head-of-state Mattarella with his cabinet, which has been the subject of days of tough negotiations between Five Star and the League, within "the next few days".

 

 The list of ministerial candidates must be endorsed by Mattarella before it can seek parliamentary approval.

Italian media reported that League chief Matteo Salvini would become interior minister while Five Star leader Luigi Di Maio will be in charge of the economic development ministry.

 

 Mattarella was reportedly concerned about the plan to name Paolo Savona as economy minister. Minister for industry between 1993-94, Savona, 81, was staunchly opposed to the signing of the Maastricht Treaty and has said he considers the euro currency a "German cage".

 

 The joint government programme unveiled by the parties on Friday pledges significant anti-austerity measures such as drastic tax cuts, a monthly basic income and pension reform rollbacks, which Di Maio and Salvini claim will boost growth.

 

 EU officials have voiced concern that Italy could trigger a new eurozone crisis by refusing to stick to public spending and debt targets set by Brussels. </s> Giuseppe Conte was sworn in as prime minister of Italy’s new populist government Friday after a last-ditch coalition deal ended months of political deadlock and narrowly avoided snap elections in the euro zone’s third largest economy.

Conte, an academic and political novice, will head a government of ministers from the anti-establishment Five Star Movement (M5S) and the far-right League party.

The first populist coalition in a founding member nation of the European Union has raised concerns in some European quarters.

The 53-year-old was sworn in along with his cabinet, which will place M5S leader Luigi Di Maio and League chief Matteo Salvini in key ministerial posts.

Italy needs to work harder and be less corrupt: Juncker

After weeks of political drama that at one stage seemed certain to lead to new elections, President Sergio Mattarella named Conte, a political novice, as prime minister for the second time in less than a fortnight and approved his revised cabinet.

Conte had abandoned his original mandate as prime minister on Sunday after Mattarella vetoed Paolo Savona as economy minister because of his hostility to the euro, prompting the collapse of the Five Star-League joint government deal.

But in a surprise twist, the populists resurrected the coalition talks and Conte eventually accepted a new mandate for the premiership.

European Union chiefs must make Italy more welcome or risk deeper crisis

He presented Mattarella with a revised list of ministers – with Savona moved to EU Affairs – that the head of state quickly accepted.

Italian media reported that the line-up will face a vote of confidence on Monday or Tuesday in both houses of parliament, which it is almost certain to win thanks to the populists’ combined majority. </s> MILAN (Reuters) - Italy’s Prime Minister-designate Giuseppe Conte has given up on efforts to form a government, a top official in President Sergio Mattarella’s office said on Sunday.

The comments were read out following a meeting between Conte and Mattarella to discuss the list of cabinet candidates the would-be coalition partners, the far-right League and the anti-establishment 5-Star Movement, were proposing.

Earlier on Sunday a source said Mattarella had rejected the name of Paolo Savona, the eurosceptic candidate whom the League/5-Star coalition had put forward to head the Economy Ministry. </s> Giuseppe Conte was sworn in as prime minister of Italy’s new populist government today after a last-ditch coalition deal ended months of political deadlock and narrowly avoided snap elections in the eurozone’s third largest economy.

Conte, an academic and political novice, will head a government of ministers from the anti-establishment Five Star Movement (M5S) and the far-right League Party. The first populist coalition in a founding EU member has raised concerns in some European quarters.

The 53-year-old was sworn in alongside his cabinet, which will see M5S leader Luigi Di Maio and League chief Matteo Salvini in key ministerial posts.

After weeks of political drama that had at one stage seemed certain to lead to new elections, President Sergio Mattarella named political novice Conte as prime minister for the second time in less than a fortnight and approved his revised cabinet.

Conte had abandoned his original mandate as PM on Sunday after Mattarella vetoed eurosceptic Paolo Savona as economy minister, prompting the collapse the Five Star-League joint government deal collapsed.

But in a surprise twist, the populists resurrected the coalition talks and Conte eventually accepted a new mandate for the premiership. He presented Mattarella with a revised list of ministers – with Savona moved to EU Affairs – that the head of state quickly accepted.

Italian media reported that the lineup will face a vote of confidence on Monday or Tuesday in both houses of parliament, which it is almost certain to win thanks to the populists’ combined majority. </s> Image copyright AFP Image caption Giuseppe Conte (L) presented a new list of ministers to President Sergio Mattarella

A coalition government has been agreed in Italy, ending months of uncertainty in the EU's fourth-biggest economy.

Prime Minister-designate Giuseppe Conte presented his list of ministers to President Sergio Mattarella for the second time in a week and the new government will be sworn in on Friday.

Ministers are drawn from both the anti-establishment Five Star (M5S) and the right-wing League.

Attempts to form a technocratic government had failed.

Mr Mattarella rejected Mr Conte's original choice for economy minister but a different candidate was agreed on Thursday.

Conflict with EU not over

Analysis by BBC's James Reynolds in Rome

Four days of political and constitutional crisis are over. And a new populist government - led by law professor Giuseppe Conte - will now be sworn in.

Image copyright AFP Image caption Aiming to rule: The Five Star Movement's Luigi Di Maio (left) and the League's Matteo Salvini

In the end, the populist parties decided to back down and accept the president's veto of their original choice of a eurosceptic economy minister.

Their newly chosen minister, Giovanni Tria, is in favour of Italy's continued membership of the single currency.

But the populists' conflict with the EU is not entirely over. The M5S and the League have promised both new welfare spending and also tax cuts - which may run into conflict with the EU's spending rules.

League leader Matteo Salvini will be the interior minister. He has promised a tough new policy on migration, which may provoke arguments within Europe.

What deal was reached?

After meeting President Mattarella, Mr Conte confirmed reports that the new candidate for the key economy minister post would be economics professor Giovanni Tria.

M5S leader Luigi Di Maio and Mr Salvini said in a brief joint statement: "All the conditions have been met for a M5S-League government."

Image copyright EPA Image caption Paolo Savona will enter government after all - but not as economy minister

Other notable appointments to the new cabinet include:

Interior and Deputy Prime Minister: Matteo Salvini (League)

Industry and Deputy Prime Minister: Luigi Di Maio (M5S)

Foreign: Enzo Moavero Milanesi (independent, ex-European Affairs minister)

Defence: Elisabetta Trenta (M5S)

European affairs: Paolo Savona (independent), the controversial original choice for finance

"We will work intensely to realise our political objectives which we have already put together in our government contract," Mr Conte was quoted as saying by the Reuters news agency.

The new government is expected to be sworn in later on Friday.

After the ceremony, it will face confidence votes in both chambers of parliament, where the M5S and the League have a majority.

Italy is no stranger to political turmoil - it has had 64 governments since World War Two.

Mr Conte is taking over from Paolo Gentiloni, who led a coalition cabinet for two years.

How did we get here?

4 March: 5-Star wins 32% of the vote in the general election, with the League taking 18%.

The two populist parties eventually attempt to form a coalition, putting forward Mr Conte, a political novice, as prime minister.

28 May: Mr Conte presents his cabinet list to President Mattarella who vetoes the choice of Mr Savona as finance minister on the grounds that he is a eurosceptic. Mr Conte bows out. Both parties are furious and Mr Di Maio calls on parliament to impeach Mr Mattarella. The president asks ex-IMF economist Carlo Cottarelli to form a technocratic government until fresh elections can be held.

Image copyright EPA Image caption Carlo Cottarelli (left) was President Sergio Mattarella's choice for interim PM

30 May: Mr Cottarelli appears to suspend his own efforts to form an interim administration as Five Star and the League engage in new talks.

31 May: Mr Conte returns to the president with a new cabinet list, which is accepted. </s> MILAN (AP) — The Latest on the drawn-out negotiations to form Italy's next government (all times local):

Italy's president has tapped politically inexperienced law professor Giuseppe Conte to be the premier who will head Italy's first populist government.

The president's office announced Thursday that Conte had accepted the role and would be sworn in Friday afternoon with Cabinet ministers.

Conte read the list of ministers and told reporters in a brief statement: "We will work with determination to improve the quality of life of all Italians. "

The announcement indicated that President Sergio Mattarella had accepted all of the ministers proposed by the anti-EU 5-Star Movement and League on their second try. The populists' choice for a euroskeptic economy minister was the sticking point that led their first attempt to form a government to fail last weekend.

5-Star Movement leader Luigi Di Maio and League leader Matteo Salvini came up with a compromise earlier Thursday that led the president to postpone trying to install a technical government until a new election could be held.

Italian president Sergio Mattarella has summoned the pick for premier by the anti-establishment 5-Star Movement and right-wing League as Italy edges toward a populist government on the second try.

Mattarella summoned law professor Giuseppe Conte to his office Friday evening, just an hour after a technical premier-designate stepped aside in a fast-changing political landscape.

Conte had been expected to teach at Florence University on Friday morning, but with signals that the 5-Stars and League might get another shot at forming a government, he grabbed a train for Rome.

The two leaders, Luigi Di Maio of the 5-Stars and Matteo Salvini of the League, announced after meeting at the parliament that they had reached an agreement to form a political government — an outcome that avoids an interim, technical government and a swift return to the polls.

A former IMF official tapped to lead Italy's government until a new election could be held has stepped aside, paving way for political government of populists.

Premier-designate Carlo Cottarelli told reporters on Thursday that "it is no longer necessary to form a technical government." He made the announcement after meeting with President Sergio Mattarella to formally renounce the post.

The leaders of two populist parties, Italy's anti-migrant League party and the anti-establishment 5-Star Movement, earlier announced they had reached a deal that would enable them to form a government.

Their first try failed when Mattarella rejected their choice of economy minister as dangerously euroskeptic.

But after they signaled they were willing to compromise, the president put Cottarelli on standby and gave them another shot.

The leader of Italy's anti-migrant, euroskeptic League party is expressing cautious optimism that he and the leader of the 5-Star Movement are back on their way to forming western Europe's first populist government.

Matteo Salvini posted a message on Facebook after meeting with 5-Star leader Luigi Di Maio and announcing they had reached new terms days after their initial coalition agreement was scuttled.

Salvini wrote: "Maybe, finally, we are there."

The timing of any new government was unclear, but developments were moving quickly. President Sergio Mattarella has called to his office the former IMF official he'd tapped to run a possible interim government of technocrats. Carlo Cottarelli was expected to formally step aside.

Salvini says it took "dedication, coherence, listening, patience, good sense, head and heart" to get a second chance while facing "many obstacles, attacks, threats and lies."

Italy's populist leaders are getting a second shot at putting together a government.

The leader of the 5-Star Movement, Luigi Di Maio, and League leader Matteo Salvini said in a statement Thursday that they have achieved "the conditions for a political government."

The political landscape in Italy has shifted swiftly in the last two days. President Sergio Mattarella put on hold a possible interim government of technocrats Wednesday after getting signals that the two populist parties were willing to compromise on the composition of their Cabinet.

Salvini and Di Maio's initial attempt to form western Europe's first populist government foundered early in the week when Mattarella refused their choice of an anti-euro economy minister.

As a next step, Mattarella has called the IMF official he named as premier-designate of a technical government to a Thursday night meeting. Carlo Cottarelli was expected to formally step aside.

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.

A day after the possibility of a governing coalition between the anti-establishment 5-Star Movement and the right-wing League was revived, League leader Matteo Salvini canceled appointments in northern Italy to travel to Rome.

Salvini declined to respond to reporters' questions when he arrived at the Rome airport. News agency ANSA said he went straight to the lower house of parliament, where he met with 5-Star leader Luigi Di Maio.

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 euroskeptic views.

Financial markets have calmed amid signs that Italy may avoid imminent elections after President Sergio Mattarella gave two populist parties time to figure out whether they can agree on an alternative to a euroskeptic economy minister.

The leader of the 5-Star Movement, Luigi Di Maio, has proposed moving the contested ministerial candidate to a different Cabinet post. League leader Matteo Salvini, meanwhile, said he isn't closing the doors on any solution.

But he's also showing some resistance to the change, saying "if someone in Berlin or Paris wakes up in a bad mood that doesn't mean that an Italian minister gets kicked out."

Mattarella gave the leaders time to form a coalition government after markets plunged on news of an interim administration that would take Italy to new elections. </s> Italy to have first populist government as Giuseppe Conte asked to be prime minister again

Italy's president has tapped politically inexperienced law professor Giuseppe Conte to be the man who will head Italy's first populist government.

Italy's anti-establishment parties revived their coalition plans, ending three months of political turmoil by announcing a government that promises to increase spending, challenge European Union fiscal rules and crack down on immigration.

The coalition deal, following inconclusive elections in March, removes the risk of a repeat vote, a prospect that had sparked a big selloff in Italian financial markets this week.

The leaders of the right-wing League and the 5-Star Movement patched up their alliance after agreeing to substitute a eurosceptic they had initially proposed as economy minister, a nomination that had been rejected by the head of state.

"All the conditions have been fulfilled for a political, 5-Star and League government," 5-Star chief Luigi Di Maio and League leader Matteo Salvini said in a joint statement after several hours of talks in central Rome.

Just a few hours later their chosen prime minister Mr 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.

"We will work with determination to improve the quality of life of all Italians," Mr Conte told reporters at the presidential palace after meeting the head of state Sergio Mattarella.

Mr Salvini will be the interior minister and Mr Di Maio will take a powerful, newly-created joint ministry made up of the labour and industry portfolios.

Both leaders will also be deputy prime ministers and many commentators have forecast that Mr Conte will have a tough time proving he can be more than a puppet in the hands of his powerful political sponsors.

His ministers will be sworn in on Friday before the government faces votes of confidence in both houses next week.

The deal followed an extraordinary few days in which Mr Di Maio called for Mr Mattarella to be impeached, Mr Conte and another prime minister-designate were tasked to form a government and failed, before Mr Conte was reinstated on Thursday evening.

Mr Mattarella even took the step of appointing former International Monetary Fund official Carlo Cottarelli as an interim prime minister until a re-election.

The breakthrough came after the League and 5-Star agreed to drop economist Paolo Savona as their choice for economy minister.

Mr Savona, an 81-year-old economist, had said previously that Italy should have a contingency plan to abandon the euro.

He will be substituted by economics professor Giovanni Tria, another little-known figure.

Mr Savona will be in government as European affairs minister, a less powerful role but one which will still allow him to negotiate with Brussels and speak on EU issues.

No sooner had the coalition deal been announced than friction flared with Brussels over remarks by European Commission chief Jean-Claude Juncker about Italy's impoverished south. </s> Giuseppe Conte, Italy's prime minister-designate, has abandoned his mandate to form a new government, the presidential palace has said.

The announcement on Sunday came after a meeting between Conte and Italian President Sergio Mattarella to discuss a proposed list of cabinet members, in what would have been Italy's first populist government.

Earlier on Sunday, it was reported Mattarella had rejected the eurosceptic candidacy of Paolo Savona for the post of minister of economy.
Italian President Sergio Mattarella accepts Giuseppe Conte as Prime Minister. Conte is now going to form his government, supported by the Five Star Movement and League.