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Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy.</s>Giuseppe Conte, Italy's prime minister-designate, has abandoned his mandate to form a new government, the presidential palace has said.

The announcement on Sunday came after a meeting between Conte and Italian President Sergio Mattarella to discuss a proposed list of cabinet members, in what would have been Italy's first populist government.

Earlier on Sunday, it was reported Mattarella had rejected the eurosceptic candidacy of Paolo Savona for the post of minister of economy.</s>MILAN (Reuters) - Italy’s Prime Minister-designate Giuseppe Conte has given up on efforts to form a government, a top official in President Sergio Mattarella’s office said on Sunday.

The comments were read out following a meeting between Conte and Mattarella to discuss the list of cabinet candidates the would-be coalition partners, the far-right League and the anti-establishment 5-Star Movement, were proposing.

Earlier on Sunday a source said Mattarella had rejected the name of Paolo Savona, the eurosceptic candidate whom the League/5-Star coalition had put forward to head the Economy Ministry.</s>ROME: Italian Prime Minister-designate Giuseppe Conte has failed to form a coalition government and resigned after President Sergio Mattarella vetoed his choice of economy minister.

Conte and Mattarella had met on Sunday to discuss officials selected by the anti-establishment 5 Star Movement and the rightist League to comprise the new government cabinet for Italy, which has been without a government for 84 days, reports Efe news.

The coalition had wanted to place 81-year-old economist Paolo Savona in charge of Italy's economy, although the former industry minister has been a key figure in questioning Italy's participation in the eurozone and the budgetary restrictions the European Union requires of its members.

Mattarella expressed his doubts about Savona although the 5 Star Movement and the League refused to back down from their choice, thus creating a standoff, given that Italy's president must approve a government's ministerial picks.

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

In response, the 5 Star Movement chief Luigi di Maio announced that the party will launch within Parliament a move to oust Mattarella for having impeded the formation of the government by vetoing Savona and refusing to sign the list of ministers presented by the coalition.

Mattarella's decision sparked an unprecedented institutional crisis, with strong opposition being mounted by the 5 Star Movement and the League, which garnered more than 50 per cent of the votes in the March 4 national elections.

Other political forces, however, citing his constitutional presidential prerogatives to protect Italian markets and savers, have rallied to Mattarella's defence.

Conte, a law professor who had been named as the coalition's prime minister, resigned, telling reporters that he "gave the maximum effort, attention, to carry out this task with the full collaboration" of both the 5 Star Movement and League.</s>(Fabio Frustaci/ANSA via AP). Italian President Sergio Mattarella addresses the media after meeting Italy's premier-designate Giuseppe Conte in Rome, Sunday, May 27, 2018. Italian President Sergio Mattarella said he refused to approve populist leaders'...

(Fabio Frustaci/ANSA via AP). Italian President Sergio Mattarella addresses the media after meeting Italy's premier-designate Giuseppe Conte in Rome, Sunday, May 27, 2018. Italian President Sergio Mattarella said he refused to approve populist leaders'...

(Fabio Frustaci/ANSA via AP). Italian President Sergio Mattarella addresses the media after meeting Italy's premier-designate Giuseppe Conte in Rome, Sunday, May 27, 2018. Italian President Sergio Mattarella said he refused to approve populist leaders'...

(Fabio Frustaci/ANSA via AP). Italian Premier-Designate Giuseppe Conte addresses the media after meeting Italian President Sergio Mattarella in Rome, Sunday, May 27, 2018. Conte relinquished a presidential mandate to put together an acceptable Cabinet.

ROME (AP) - Italy's political landscape grew even shakier Sunday after the president refused to approve a proposed Cabinet minister with views critical of the euro currency and the premier-designate quit his bid to form a populist coalition government.

After being summoned to and emerging from the Quirinal presidential palace, Premiere-Designate Giuseppe Conte did not say why he couldn't form what would have been Western Europe's first populist government.

But Italian President Sergio Mattarella told the nation minutes later he had refused to accept the nominee the euroskeptic League and 5-Star Movement parties had put forward as economy minister.

League leader Matteo Salvini in recent days had virtually given an ultimatum over the economy minister pick to Mattarella, whose duties as head of state include sanctioning a new Cabinet.

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.

The economy ministry "always constitutes an immediate message of trust or alarm" for financial markets, Mattarella said, adding that he had asked for someone who was not "supporting a position expressed more than once that could probably, or in fact inevitably, provoke Italy's exit from the euro."

Mattarella said he was considering political party leaders' request for another election and would announce his next move "in the next hours."

The previous parliamentary election, held March 4, failed to produce a party with enough support to govern singlehandedly. League leader Salvini and fellow euroskeptic Luigi Di Maio of the 5-Star Movement agreed this month to join their rival forces in a coalition to break the political impasse.

With neither of them willing to back the other as premier, however, they ended up tapping political novice Conte, a law professor at the University of Florence and a 5-Star supporter.

A presidential palace official, Ugo Zampetti, told reporters Sunday night that Conte "has given back the mandate" Mattarella gave him four days earlier to try to form a government.

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.

Savona is a former industry minister who has questioned whether Italy at some point should ditch the euro as its official currency,

Anticipating Mattarella's decision, Salvini seethed. "We're not a free country," he said at a political rally. "We've got limited sovereignty."

Earlier Sunday, an Italian economics-focused web site, scenarieconomici.it, carried a statement from Savona that appeared aimed at assuaging doubts about his commitment to the euro currency and the European Union's rules.

"I want a different Europe, stronger but fairer," Savona was quoted as saying.

Di Maio also scathingly criticized Mattarella's veto of Savona as "incomprehensible."

"This is not a free democracy," Di Maio said.

Di Maio's Movement is the largest party in the new Parliament but remains far short of having an absolute majority.

Italy's outgoing economy minister, Pier Carlo Padoan, said in a TV interview Sunday that the real problem isn't Savona, whom he described as having a good background for the post.

Instead, what Padoan finds worrisome is the "clearly unsustainable" platform of a populist government "that doesn't rule out a Plan B: that is, in the face of European pressures, one must leave Europe."

Frances D'Emilio is on Twitter at www.twitter.com/fdemilio

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>Italian premier-designate Giuseppe Conte has failed to form country's first populist government.

ROME (AP) — Italian premier-designate Giuseppe Conte has failed to form country's first populist government.</s>Italy’s premier-designate has told the president he has been unable to form what would have been western Europe’s first populist government.

Italy’s premier-designate has told the president he has been unable to form what would have been western Europe’s first populist government.

A presidential palace official said that Giuseppe Conte “has given back the mandate” to try to form a government that President Sergio Mattarella gave him four days earlier.

Mr Conte said he tried his hardest to form the country’s next government and had full cooperation from would-be coalition partners, the populist 5-Star Movement and League parties. The University of Florence law professor said he “gave the maximum effort, attention, to carry out this task with the full collaboration” of the 5-Star Movement and League.

Mr Conte, who has no political experience, received the mandate last week from the pro-European Mr Mattarella. Assembling a Cabinet acceptable to both Mr Mattarella and the populist partners foundered on League leader Matteo Salvini’s insistence on a Eurosceptic economy minister.

League leader Matteo Salvini tweeted on Sunday that he would keep fighting “to the end” for the anti-euro candidate he wants to be the minister. Paolo Savona has likened Italy to being in a “cage” of austerity restrictions favoured by fellow eurozone member Germany.

Mr Salvini and 5-Star Movement leader Luigi Di Maio, a fellow Eurosceptic, joined forces in the hope of giving Italy its first populist government. After inconclusive March 4 elections, they proposed Mr Conte as their choice to lead the next government.</s>ROME (AP) — The Latest on the drawn-out process of forming Italy's new government (all times local):

Italy's premier-designate has told the president he has been unable to form what would have been western Europe's first populist government.

A presidential palace official told reporters Sunday night that Giuseppe Conte "has given back the mandate" to try to form a government that President Sergio Mattarella gave him four days earlier.

Separately, right-wing leader Matteo Salvini indicated in remarks to supporters Sunday that he had refused to submit to a presidential veto of his choice of a euroskeptic economy minister.

Italy's premier-designate has been summoned to the presidential palace to report Sunday on whether he has assembled a Cabinet for a euroskeptic government that meets the president's approval.

University of Florence law Professor Giuseppe Conte received a mandate last week from staunchly pro-Europe President Sergio Mattarella to try to form viable government out of rival populist forces.

The political novice's task was complicated by right-wing leader Matteo Salvini's insistence that the Cabinet include his pick for economy minister, a former government minister who has raised doubts about Italy keeping the euro as its official currency.

Salvini, along with 5-Star Movement leader and fellow euroskeptic Luigi Di Maio, agreed this month to join their rival forces in a coalition to break a political impasse caused by an inconclusive March 4 parliamentary election.

The leader of Italy's right-wing League party says he won't give ground in a standoff that is blocking the country's next government from taking office.

League leader Matteo Salvini tweeted Sunday that he would keep fighting "to the end" for the anti-euro candidate he wants to be economy minister.

Paolo Savona has likened Italy to being in a "cage" of austerity restrictions favored by fellow eurozone member Germany. President Sergio Mattarella, who as Italy's head of state must approve the next Cabinet, is staunchly pro-euro.

Salvini and 5-Star Movement leader Luigi Di Maio, a fellow euroskeptic, have joined forces in hopes of giving Italy its first populist government.

After inconclusive March 4 elections, they proposed a political novice, law professor Giuseppe Conte, as their choice to lead the next government.</s>ROME — Italy’s political landscape grew even shakier Sunday after the president refused to approve a proposed Cabinet minister with views critical of the euro currency and the premier-designate quit his bid to form a populist coalition government.

After being summoned to and emerging from the Quirinal presidential palace, Premiere-Designate Giuseppe Conte did not say why he couldn’t form what would have been Western Europe’s first populist government.

But Italian President Sergio Mattarella told the nation minutes later he had refused to accept the nominee put forward by the euroskeptic League and 5-Star Movement parties as economy minister.

League leader Matteo Salvini in recent days had virtually given an ultimatum over the economy minister pick to Mattarella, whose duties as head of state include sanctioning a new Cabinet.

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.

The economy ministry “always constitutes an immediate message of trust or alarm” for financial markets, Mattarella said, adding that he had asked for someone who was not “supporting a position expressed more than once that could probably, or in fact inevitably, provoke Italy’s exit from the euro.”

Mattarella said he was considering political party leaders’ request for another election and would announce his next move “in the next hours.”

The previous parliamentary election, held March 4, failed to produce a party with enough support to govern singlehandedly. League leader Salvini and fellow euroskeptic Luigi Di Maio of the 5-Star Movement agreed this month to join their rival forces in a coalition to break the political impasse.

With neither of them willing to back the other as premier, however, they ended up tapping political novice Conte, a law professor at the University of Florence and a 5-Star supporter.

A presidential palace official, Ugo Zampetti, told reporters Sunday night that Conte “has given back the mandate” Mattarella gave him four days earlier to try to form a government.

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.

Savona is a former industry minister who has questioned whether Italy at some point should ditch the euro as its official currency,

Anticipating Mattarella’s decision, Salvini seethed. “We’re not a free country,” he said at a political rally. “We’ve got limited sovereignty.”

More: These are the major challenges Italy's next prime minister faces

More: Giuseppe Conte: Italy's next PM to form western Europe's first populist government

Earlier Sunday, an Italian economics-focused website, scenarieconomici.it, carried a statement from Savona that appeared aimed at assuaging doubts about his commitment to the euro currency and the European Union’s rules.

“I want a different Europe, stronger but fairer,” Savona was quoted as saying.

Di Maio also scathingly criticized Mattarella’s veto of Savona as “incomprehensible.”

“This is not a free democracy,” Di Maio said.

Di Maio’s Movement is the largest party in the new Parliament but remains far short of having an absolute majority.

Italy’s outgoing economy minister, Pier Carlo Padoan, said in a TV interview Sunday that the real problem isn’t Savona, whom he described as having a good background for the post.

Instead, what Padoan finds worrisome is the “clearly unsustainable” platform of a populist government “that doesn’t rule out a Plan B: that is, in the face of European pressures, one must leave Europe.”</s>President Sergio Mattarella authorized Zampetti to form the government on Wednesday.

On May 18, the anti-establishment Five Star Movement (M5S) and Lega party published a coalition agreement and later nominated lawyer Giuseppe Conte for the premiership. On Wednesday, President Sergio Mattarella authorized Conte to form a new national government in a step meant to end political uncertainty created by the March 4 inconclusive election.
Prime Minister designate Giuseppe Conte gives up trying to form a government after President Sergio Mattarella earlier vetoed the nomination of technocrat Paolo Savona as Minister of Finance.