Italy's government cast into uncertainty following presidential block

Italy's government cast into uncertainty following presidential block

Italy's government cast into uncertainty following presidential block

Following the collapsed talks, Mattarella has summoned Carlo Cottarelli, former director of the International Monetary Fund's fiscal affairs department, for talks on Monday, with a temporary technical government now looking inevitable as Italy faces the strong possibility of new elections in the autumn.

Aattempt to form a government in Italy has failed after the president rejected the choice of a Eurosceptic in the role of economy minister • The move has angered Cinque Stelle and Lega, the anti-establishment parties trying to form a coalition government.

In a televised address, Mr Mattarella said he had rejected the candidate, 81-year-old eurosceptic economist Paolo Savona, because he had threatened to pull Italy out of the euro zone. "We'll see if we can start a discussion on the electoral law in parliament".

The greenback was up 0.05 per cent at 109.400 yen after going as high as 109.830 on a slight ebb in risk aversion after U.S. President Donald Trump said on Sunday a U.S. team had arrived in North Korea to prepare for a proposed summit between him and North Korean leader Kim Jong Un.

Politics in Italy have taken a dramatic turn with the tentative right-wing coalition, which formed after a March election, unraveling.

The prospect of Italy's government going on a spending spree on promised tax cuts and welfare benefits roiled markets last week.

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

Before Conte or Mattarella had finished their meeting, far-right League leader, Matteo Salvini, insisted the only option now was to "let the Italians have their say" and hold another election, probably later this year.

The agreement to form a populist coalition came after weeks of fruitless negotiations following the results of the March 4 elections, which did not give any party an outright majority.

10 2008 shows the 81 hold economist Paolo Savona looking on during a meeting in Rome. Paolo Savona chosen by the Italian populists to be the new finance minister is an eurosceptic economist very critical of Germany who made
Italy's efforts to form government break down as eurosceptic Savona rejected

"If there's not the OK of Berlin, Paris or Brussels, a government can not be formed in Italy".

The decision led to prime minister-elect Giuseppe Conte stepping aside, exacerbating the political turmoil almost three months after March's inconclusive general election.

The move created a new round of political uncertainty in a country long used to political turnover and paved the way for an early election likely within months.

The constitution also gives the president the power to dissolve parliament, a deterrent force which has played a part in numerous prior political crises in Italy - a country which has had 64 governments since 1946.

Such a solution could only be short term, as most members of parliament have said they would not support such a government.

However, Salvini dismissed calls on Monday by Five Star and a far-right ally, the Brothers of Italy, to chase Mattarella out of office.

The Five Star/League coalition has a majority in both houses of parliament.

The 5-Star's Di Maio demanded impeachment under article 90 of the constitution. The constitutional court would then be called to decide whether to enforce the decision.

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