Talks held in Italy amid political crisis

GETTYFive Star Movement's leader Luigi Di Maio called the president's choice'incomprehensible

GETTYFive Star Movement's leader Luigi Di Maio called the president's choice'incomprehensible

Luigi Di Maio and Matteo Salvini still want Giuseppe Conte, an academic, as prime minister.

But after they signaled they were willing to compromise, the president put Cottarelli on standby and gave them another shot.

Conte selected economics professor Giovanni Tria for the role of finance minister after he resigned on Monday when Mattarella refused to approve Conte's original nomination of Paolo Savona.

Though investors were relieved to avoid repeat elections, which they feared could have become a de facto referendum on the euro, they are now likely to refocus on the big spending plans of the League and 5-Star, which would add to its debts.

Italy's inconclusive parliamentary election in March produced months of political stalemate before Mattarella asked Conte, a political novice tapped by the 5-Stars and League, to try to form a government. The 5-Stars, by contrast, got 32 percent.

Italian Premier Giuseppe Conte is cheered by citizens on the occasion of the celebrations for Italy's Republic Day, in Rome Saturday, June 2, 2018.

Di Maio will be the new joint industry and labor ministry, aiming to introduce a basic income for job seekers and poor families; Salvini is the interior minister, with a goal of cracking down on undocumented migrants.

Di Maio, the new economic development minister, reported for work after the parade to his ministry, which would have otherwise been closed for the holiday. "We should now call this a crisis", said Kit Juckes, an analyst at Societe Generale.

The Cabinet also includes defense attorney Giulia Bongiorno as the new minister for public administration.

The changing of the guard sets the stage for obligatory confidence votes in Parliament next week.

The world will be carefully watching power relations between Conte and his two influential deputies - particularly the European Union, given the eurosceptic government is the first populist coalition in a founding EU member. Le Pen shares the League's firm stance against immigrants.

The two parties together won a narrow majority in elections on March 4. "One thing though: Gotta stay strong, the bully boys will be after you".

European Commission President Jean-Claude Juncker tweeted that the EU's executive would be "at Italy's side on its reform path and remain attentive to Italy's expectations of and proposals for the future of the EU".

Public resentment over what was perceived as fellow European Union nations' failure to help ease the financial and logistical burden on Italy in caring for the flood of migrants helped boost the League's popularity.

"We'll get to work to create work, for those who don't have it, for those that do but without dignity", Di Maio said. Seriousness", he said. "We will help them, as we always did. But don't play this game of loading with responsibility the EU.

His comments sparked outrage in Italy, with League leader Matteo Salvini blasting them as "racist" in his victory speech late Thursday in the League's base in northern Lombardy.

The leaders of two populist parties in Italy are meeting in Rome amid revived prospects for a political government after their first attempt failed on their choice of a euroskeptic economy minister.

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