Italy searched for a last-minute exit from almost three months of political turmoil on Wednesday, with its biggest party looking to make a renewed attempt to form a coalition government with the right-wing League.
The two anti-establishment parties, the 5-Star Movement and League, had abandoned plans to jointly take power at the weekend after the president blocked their proposed cabinet lineup.
President Sergio Mattarella’s veto of 81-year-old eurosceptic Paolo Savona as economy minister appeared to tip the country back towards repeat elections and triggered a dramatic speculative attack on Italian financial markets.
The parties are now trying to find “a point of compromise on another name” for the economy ministry, said the source close to 5-Star, the single-biggest party in the new parliament.
The sense that a resolution of the stalemate might be at hand came from Prime Minister-designate Carlo Cottarelli, who was tasked by the head of state this week to calm the turmoil and plan for repeat elections after the summer.