Italy moves towards populist government as untried academic is put forward for premier

Italy edged towards its first populist government as the Five Star Movement and rightwing anti-immigration League chose a law professor with no political experience to become the country’s next premier.

Neither Five Star leader Luigi Di Maio nor League head Matteo Salvini named Giuseppe Conte as their choice after closed-door meetings with President Sergio Mattarella.

But in a breach of protocol, Mr Di Maio later identified Mr Conte outside the Quirinal presidential palace and posted his name on the movement’s popular blog.

Virtually unknown in Italian political circles and the general public, Mr Conte teaches private law at the University of Florence, where his colleagues have a good opinion of him.

He was first contacted by Five Star several months ago, when it offered him the position of minister of public administration if they won the election.

When it appeared that no one from Five Star or the League would be acceptable to the other party as premier, Mr Conte’s name came up for the top job.

But he will wield little power in the role, will not appoint ministers to his cabinet and will rubber-stamp decisions taken by the coalition partners.

The consultations with the president could be the last before a government is formed, 11 weeks after the election ended in a hung parliament.

Mr Mattarella will decide whether he accepts Mr Conte as premier-designate.

If the president consents, the new prime minister would bring a list of Cabinet members for the president’s approval, and the government would face confidence votes in both houses of parliament.

The prospect of a Five StarLeague government weighed heavily on markets and on Italy’s European allies. The cost of borrowing to fund Italy’s persistently high public debt rose on Monday to the highest levels in nine months, and the Milan stock market was trading down 1.5 per cent.

The French Minister of Economics, Bruno Le Maire, has already sounded an alarm that the eurozone’s financial stability could be threatened if a populist government shakes off Italy’s deficit commitments.

“If the new government takes the risk of not respecting its commitments on debt, the deficit, but also on consolidation of banks, then the entire financial stability of the eurozone will be threatened,” Mr Le Maire told the Cnews TV channel on Sunday.

Most worrying to financial markets is the two parties’ platform, unveiled last week.

It includes a rollback on pension reform, a minimum salary for struggling Italians and the introduction of a flat tax, which will contribute to a large fiscal expansion that economists and EU policymakers worry will increase the country’s debt.

The programme also introduces a tougher stance on deporting migrants and calls for a better dialogue with Russia on economic and foreign policy matters, while maintaining its transatlantic alliance.

Mr Di Maio assured voters that the government would find the money to pay for social programmes and tax cuts, through investments and in negotiations on the EU’s seven-year budget cycle, but neither the markets nor European partners were assuaged.

A Five Star-League government would have a very thin majority of just over 50 per cent of parliamentary seats.