Italy national pride on display after political crisis ends

Italy national pride on display after political crisis ends

Italy national pride on display after political crisis ends

Attendees came from all over Italy to celebrate, excited to finally see their representatives from the anti-establishment Five Star Movement at the highest levels of the government, which was formed after the creation of a coalition with the far-right League party.

Italy's new Prime Minister, Giuseppe Conte, attended a military parade on his first full day in office Saturday, while his outspoken deputy Matteo Salvini was to head to Sicily as part of his campaign against illegal immigration.

According to Italian media the populist line-up will face a vote of confidence in both houses of parliament on Monday or Tuesday.

The former International Monetary Fund director was expected to present a technocratic cabinet line-up on Wednesday after an effort to form a political government, nearly three months on from inconclusive elections, failed.

The anti-establishment 5-Star Movement and the right-wing League party are swearing in their Cabinet later Friday, capping a roller-coaster week of political and financial turmoil by agreeing to drop a proposed economy minister who had concerned Italy's president.

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". Worries about Italy leaving the euro eased as Five Star and the League insisted they had no plans to ditch the common currency or to abandon the European Union.

Mr Salvini said late on Wednesday that he is not closing the doors on any solution but also indicated 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".

Global financial markets have been recovering over the past two days after tumbling on the spectre of repeat elections dominated by debate over Italy's future in the euro zone.

"We'll get to work to create work, for those who don't have it, for those that do but without dignity", Di Maio said.

The president approved the list Thursday and announced Conte would be the country's new prime minister.

"We will work intensely to realise our political objectives which we have already put together in our government contract", Mr Conte was quoted.

In the new cabinet, Savona will serve as Minister for European Affairs.

But his earlier attempt at forming a government broke down on Sunday after Mattarella refused to endorse Paolo Savona, a vocal critic of the European Union (EU), for the post of minister of economy.

"We are not at the market", he said on Wednesday when asked about the possibility.

In his place at the economy ministry is Giovanni Tria, a mainstream economist at Rome University who is considered close to the Forza Italia party of ex-Premier Silvio Berlusconi.

Italy had been without a government since it held elections in March, the longest stretch without a government in the country's postwar history.

Savona was vetoed by President Sergio Mattarella, who feared that the former industry minister's anti-euro views would spook markets.

Currently, Prime Minister-designate Cottarelli has no major parliamentary support for a stopgap government of technocrats.

However the new government will have to square its reforms with its debt pile which represents 132 percent of its gross domestic product, more than double the EU's 60-percent ceiling.

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