Published: Fri, June 01, 2018
Global Media | By Derrick Guzman

New possibilities’ have emerged to form Italian government

New possibilities’ have emerged to form Italian government

"We will work to improve life conditions of all Italians".

Cottarelli's statement about renewed chances for a political government was issued after he consulted briefly with Mattarella, having asked for more time to come up with a proposed list of cabinet ministers.

Mattarella's power play will almost certainly work to the favor of the populist leaders because it will galvanize voters into reasserting with even greater force their sovereignty.

Following a meeting with the Italian President, law professor Giuseppe Conte has agreed to take on the role of prime minister. The 5-Stars, by contrast, polled 32%.

However, Italians could be heading back to the polls as Mr Mattarella said he was considering political party leaders' requests for another election.

The two men had met in Rome Thursday for talks on the possible new government, 88 days after the inconclusive March 4 general election.

That left Cottarelli, a former International Monetary Fund economist known as "Mr Scissors", tasked with naming a technocrat government. He made the announcement after meeting with President Sergio Mattarella to formally renounce the post.

The leaders of Italy's two main populist parties appeared to be throwing down a gauntlet at Europe last week, forming an anti-establishment government that they imagined would act on their staunchly anti-Brussels agenda.

The old order in the euro area's third-biggest economy buckled at the March elections as the center-left Democratic Party of ex-premier Matteo Renzi suffered its worst ever result, and Silvio Berlusconi, 81, was eclipsed as leader of the center-right by the more hard-line League.

Salvini and Di Maio furiously denounced the presidential veto, blasting what they called meddling by Germany, debt ratings agencies, financial lobbies, and even alleging lies from Mattarella's staff.

It wasn't clear what shape a political government might take. Carlo Cottarelli was expected to formally step aside.

He said he would announce his next move "in the next hours".

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

Di Maio had proposed a renewed effort to form an alliance with the right-wing League on Tuesday night insisting that the two blocs still enjoy a parliamentary majority. With both parties now in discussions again, there is a hope that the political impasse can be resolved which is helping to lift sentiment in the near-term.

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.

Later on an Italian television, he called for impeaching Mattarella.

Opinion polls show Salvini's League would see huge gains in any early elections while the 5-Star would remain steady.

The parties were trying to find "a point of compromise on another name" after the rejection of arch-eurosceptic Paolo Savona for the ministry.

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.

Mr Mattarella had vetoed Mr Savona, a former industry minister who has questioned whether Italy should keep the euro, leading to the collapse of the 5-Star-League bid.

"I will read the composition of the government", Giuseppe Conte, who will be sworn in Friday as prime minister with the rest of his Cabinet, said late Thursday.

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