New Italian govt vows to create jobs, deport migrants

New Italian govt vows to create jobs, deport migrants

New Italian govt vows to create jobs, deport migrants

An anti-establishment government will be sworn in Friday in Italy after a last-ditch coalition deal was hammered out to end months of political deadlock, narrowly avoiding snap elections in the eurozone's third largest economy.

The 53-year-old academic heads a government of ministers from the anti-establishment Five Star Movement (M5S) and the far-right League Party, the first populist coalition in a founding European Union member.

Prime Minister-designate Giuseppe Conte initially dropped his bid to lead a coalition after President Sergio Mattarella blocked Conte's initial choice for economy minister because of his euroskeptic views, which cast doubt on the ability of parties to form a government.

Italy's inconclusive parliamentary election in March produced months of political stalemate before Mattarella asked Conte to try to form a government.

Conte, 53, who has been criticised as being a "Mr Nobody", named hardline anti-migrant Salvini as interior minister, while Di Maio will become minister for economic development.

Mr Salvini pointed to polls showing support for his party up ten per cent since March 4 elections left Italy without a working government.

Euroskeptic politicians cheered and Milan's stock index rose Friday after Italy's populists staved off the threat of a new election and formed western Europe's first populist government with a last-minute compromise. They made a decision to join their forces after emerging as the two most voted parties.

Conte, a law professor plucked from relative obscurity to head an unlikely governing alliance of the anti-establishment 5-Star Movement and League, said the celebrations Saturday transcended all the tensions of recent days.

This, along with claims by President of the European Commission Jean-Claude Juncker that Italy needs "more work; less corruption; [and] seriousness" rather than less EU nearly guarantee that Rome and Brussels will come into conflict sooner rather than later.

Both Luigi di Maio, leader of M5S and League chief Matteo Salvini reacted with fury at Mattarella's decision to block their nomination for Finance Minister.

The new finance minister, Giovanni Tria, told reporters inside the palace that "no political party wants Italy out of the euro". Salvini has campaigned on the promise of mass deportations of migrants and said a new government would build detention centres around Italy.

After the initial attempt to form a government failed, Mattarella picked Carlo Cottarelli as interim prime minister.

Among members of the new government is economist Paolo Savona, who created a plan for Italy's departure from the common currency.

"They are both led by young and ambitious leaders who share prime-ministerial ambitions".

"In a conference earlier on Thursday, the president of the European Commission, Jean-Claude Juncker, was reported saying that Italians had to work more and fight corruption to improve the situation in the country's impoverished south".

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