Turmoil for Italy as PM candidate quits

ITALY was thrown back into political turmoil last night as its would-be prime minister quit in a row over an 81-year-old economist.

Giuseppe Conte was set to lead the EU’s first openly eurosceptic regime following a general election in March.

The 53-year-old, a legal professor with no political background, had been chosen to lead the coalition of the anti-establishment Five Star Movement and far-right League party. However, he gave up his mandate after talks with the president over his cabinet collapsed.

The announcement came following a meeting between Conte and Sergio Mattarella to discuss the list of cabinet candidates proposed by the coalition partners. President Mattarella said he ‘did all he could’ to favour the formation of a government and end 11 weeks of political stalemate following elections on March 4. But he rejected Conte’s choice for the economy minister – the Eurosceptic economist Paolo Savona, 81. Mr Conte told reporters: ‘I can assure you that I have given the maximum effort and maximum attention in carrying out this task.’

League leader Matteo Salvini said the only option now was to hold another election, likely to take place later this year. He told supporters: ‘In a democracy – if we are still in democracy – there’s only one thing to do: let the Italians have their say.’

Luigi Di Maio, leader of the Five Star Movement, said the rejection of Mr Savona was ‘unacceptable’. He added: ‘It’s an institutional clash without precedent. What’s the point of going to vote if it’s the ratings agencies that decide?’ President Mattarella admitted the talks collapsed over Mr Savona’s appointment, which he said would have ‘alarmed markets and investors, Italians and foreigners.’

Mr Savona, a former industry minister, has described joining the Eurozone as an ‘historic error’ and said the single market was designed to benefit Germany.

The former chief economist of the International Monetary Fund had previously warned that Italy could set the Eurozone on the path for a ‘horrific’ crisis if the coalition got their own way.

Olivier Blanchard said the spending plans of the would-be coalition would put debt on ‘an unsustainable trajectory’.

Italy’s borrowing costs have spiked over the past two weeks and ratings agency Moody’s has threatened to downgrade the country’s credit rating which could see it lowered to just one level above ‘junk’.