Italy’s caretaker prime minister to unveil cabinet

ROME: Italy’s caretaker prime minister is expected to unveil his cabinet line up Wednesday in a bid to end the chaos that has raised fears for the stability of eurozone after the populist coali tion’s bid to govern collapsed.

Carlo Cottarelli had prom ised to deliver the list “as soon as possible” but the economist discreetly left the presidential palace after a brief meeting with President Sergio Mattarella on Tuesday afternoon without mak ing any statement.

Shortly afterwards Giovanni Grasso, a spokesman for the president said Cottarelli “has informed the head of state of the situation and... both will meet again tomorrow morning.”

Mattarella on Sunday blocked IMF economist known as “Mr Scissors”, tasked with naming a technocrat government.

Five Star and the League, who hold a majority in both houses of parliament, have vowed to reject Cottarelli’s proposed technocrat government.

New elections are now consid ered the most likely outcome of the political saga, sparked by an inconclusive poll in March.

On Tuesday Five Star leader Lu igi Di Maio called for a return to the polls “as soon as possible.” Ital ian media said the elections could be scheduled for as early as July.

The uncertainty in the country and the fear that the Five Star Movement and the euroskeptic League could win even more votes if a fresh vote is held ap peared to spook the financial markets.

surged to over 300 basis points on Tuesday morning before clos

Global markets have been sent into a tailspin as a political crisis unfolding in Rome has thrust the stability of the eurozone and Euro pean Union back on to the agenda.

said it would be better for Italy to resolve its current political crisis while staying within the eurozone. failed because of pressure from crat government win parliamen tary approval, it would stay in place until elections at the “start of 2019”.

But if parliament fails to ap prove his government, a new election would be held. Only