(MENAFN- Gulf Times) Italy's anti-establishment 5-Star Movement (M5S) and the far-right League have proposed Giuseppe Conte, a little-known law professor who is not in parliament, as prime minister to lead their big-spending coalition government.
After meeting President Sergio Mattarella, the leaders of both parties said that they had chosen Conte minister to end 11 weeks of deadlock after inconclusive elections on March 4.
'I am very proud of this choice, Giuseppe Conte will carry forward our government contract, M5S leader Luigi Di Maio said after leaving the presidential palace.
The two anti-establishment parties finalised a policy agenda or 'contract last week after 10 days of negotiations, calling for billions of euros in tax cuts, additional spending on welfare for the poor, and a roll-back of pension reforms.
There was no word from Mattarella, who formally nominates the prime minister and is not obliged to approve the parties' choice.
Conte, who teaches at Florence University, has no political experience but is close to M5S, and was one of the people put forward by the party as a possible minister before the election, when he pledged to simplify the country's labyrinthine bureaucracy.
That was the first time Conte, 54, had appeared in the public spotlight, though he is on the board of numerous academic and judicial bodies and had participated in conferences on justice matters organised by M5S.
Italy's borrowing costs surged further yesterday, with two-year bond yields at their highest level since December 2016.
Investors fear Italy's new government will go on a spending spree that will increase an already huge debt pile worth more than 130% of annual economic output and contravene European Union fiscal rules.
Markets were also hammered last week when the two parties presented their government plans.
If Mattarella gives his blessing to Conte, the parties could put a cabinet together rapidly and hold confidence votes in parliament later this week.
Ratings agencies also have signalled concern.
Fitch said yesterday that having a M5S/League government would increase Italy's fiscal risks, after the DBRS issued a similar warning last week.
Fitch rates Italy a low investment-grade BBB with a stable outlook, while the DBRS assigns a BBB High rating with a stable trend.
M5S and the League have tried to allay those concerns and, after meeting the president, both Di Maio and League leader Matteo Salvini urged foreign observers to give them a chance.
'Let us get to work first and then criticise us. You have every right to do so, but let us start first, Di Maio told reporters, while Salvini said the government was committed to cutting debt by fostering economic growth.
Italians appear to want the tie-up.
Some 60% are in favour of a M5S/League coalition government, a Demos & Pi poll published on Sunday indicated.
More than 80% of M5S and League voters back it, the poll said.
MENAFN2105201800670000ID1096890627
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.