Italy's anti-establishment leaders revive governing coalition

Giuseppe Conte is a lawyer by trade

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.

The president approved Conte and a rejiggered Cabinet list Thursday after Paolo Savona was moved from the economy slot to that of the ministry of European affairs. He returned from Rome to address a crowd of supporters in his northern home region of Lombardy.

Salvini said "I want to make Italy a protagonist in Europe again".

"The initiative for a new anti-establishment government. would have to imply a credible pro-European commitment and a commitment to the Italian Constitution, i.e. the fiscal framework, to have any chance of flying", Codogno said. "We are second to none".

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.

Luigi Di Maio, head of the 5-Star Movement which emerged from inconclusive elections in March as the biggest party in parliament, appealed to the League to drop its insistence on Savona as economy minister, so that the two parties could resurrect their bid to govern together.

The parties' new economy minister, another little-known figure, economics professor Giovanni Tria, has been critical of the EU's economic governance, but unlike Savona he has not advocated a "plan B" for possibly exiting the euro.

Salvini has long wanted his new post, from where he will aim to stop "the business" of migration, cracking down on people smuggling networks and speed up expulsions of illegal immigrants in a country on the front line of Europe's migrant crisis.

"Starting today, we get to work to create work", Di Maio said in a Facebook video giving Italians a tour of the empty ministry. "It is a lie invented by Mattarella's advisors", Mr Di Maio mentioned in a dwell video on Fb.

Offering the new government cautious support was Italy's small, far-right neo-fascist CasaPound party, which held its own Republic Day commemoration on Saturday. Markets feared that election would become a de facto referendum on Italy's use of the euro.

"It's astounding that Paolo Savona, a person of great culture and political awareness, has not yet chose to take a step back", newswire Ansa cited Castelli as saying on Wednesday.

The new foreign minister is very close to the European Union, so surely they will not take drastic steps following the formation of the new government.

Five Star Movement leader Luigi Di Maio appeared willing to return to the negotiation table on Tuesday night, walking back his call for the impeachment of Mattarella as well.

The two leaders canceled other engagements Thursday to meet at the parliament in Rome and hammer out a Cabinet.

Mattarella received a round of applause from the press room at his palace when he described the recent events as "this complex itinerary that led to the formation of a government". The appointment also riled populists whose attempts to form a government were quashed by Mattarella over their designation of a euroskeptic economy minister. The revelation that Conte's resume exaggerated academic credentials at elite universities in Europe and the United States did not help.

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