Italy's efforts to form government break down as eurosceptic Savona rejected

Italy's efforts to form government break down as eurosceptic Savona rejected

Germany's deputy foreign minister says he hopes there will be a "stable, pro-European" government in Italy soon, but has acknowledged that his country is in no position to offer advice after its own long-drawn-out effort to form a new administration.

Conte was seen heading to the parliament building in Rome where he was hammering out a final lineup to present to the president, who has rejected the populist coalition's proposed finance minister, the eurosceptic Paolo Savona.

While Conte held his final talks with the president, Salvini was telling right-wing supporters he had refused to submit to a presidential veto of his choice for economy minister, Paolo Savona.

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

5-Star leader Luigi Di Maio, whose party won the most seats at an inconclusive March 4 vote, demanded that parliament impeach Mattarella.

Earlier on Monday, League leader Matteo Salvini said his party was evaluating whether to continue the alliance with the 5-star in any new elections.

In a statement late on Sunday, the three-time premier took a much more measured tone about the collapse of the Five Star-League experiment, refusing to criticise Mr Mattarella.

Italy's populist Five-Star Movement (5SM) and the far-right Northern League are in the final steps of forming a government under premier-designate Giuseppe Conte.

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On his new Facebook page, Conte said he had received best wishes for his government in a phone call with French President Emmanuel Macron.

"After tonight, it's truly hard to believe in the institutions and the laws of the state", Di Maio said. "It's a folly, and I ask the Italian people to stay close to us because I want to bring democracy back to this country", Salvini told reporters.

Mr Cottarelli, 64, worked at the International Monetary Fund from 2008 to 2013, gaining the nickname "Mr Scissors" for making cuts to public spending in Italy. "I asked for a figure who would mean not risking an exit from the euro".

The president said he approved all of the other Cabinet picks, but rejected the coalition partners' choice for the economy portfolio out of concern it would have a negative effect on financial markets and the Italian economy.

Meanwhile, utility stocks led the gains, up around 0.7 percent amid political uncertainty in Italy.

During the financial crisis in 2011, when global markets turned on Italy, President Giorgio Napolitano supported a move to oust Silvio Berlusconi and replace him with former European Commissioner Mario Monti.

Markets remained under pressure Monday as geopolitical turmoil in Italy continued to affect the euro.

Di Maio also scathingly criticized Mattarella's veto of Savona as "incomprehensible". Di Maio and Matteo Salvini finally made a decision to join forces but each vetoed the other for the prime minister post.

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