Italy's head of state is set to sign off on a new government on Wednesday after two rival political parties agreed an unlikely coalition that is expected to improve ties with the European Union and adopt a softer stance on immigration.

Prime Minister Giuseppe Conte, who led the outgoing administration, is expected to unveil his new cabinet lineup and seek a new mandate from President Sergio Mattarella as early as Wednesday morning.

The alliance between the anti-establishment 5-Star Movement and the centre-left Democratic Party (PD), formerly sworn enemies, followed a month of political upheaval triggered by the sudden collapse of the previous ruling alliance.

The far-right League party of outgoing Interior Minister Matteo Salvini pulled out of its coalition with the 5-Star party, declaring it unworkable and calling for early elections in the hope that Salvini could return to power a prime minister.

Salvini's gambit backfired badly, ushering in a new alliance that is expected to soften his confrontational stance on EU budget rules, which he blamed for Italy's weak economy, and his crackdown on migrants arriving by boat from Africa.

Once Mattarella agrees to Conte's cabinet, the prime minister will then have to win confidence votes in both houses of parliament before the government can officially start work.

5-Star and PD unveiled on Tuesday a shared, 26-point policy programme for their mooted coalition, putting an expansionary 2020 budget at the top of their agenda but pleasing markets with a pledge draft a budget that would not endanger public finances.

The coalition cleared its final hurdle on Tuesday night when members of 5-Star approved the marriage in an online vote.

The key post of economy minister may go to the PD's Roberto Gualtieri, now head of the European Parliament's economic affairs commission, or to Dario Scannapieco, a former Treasury official who is vice president of the European Investment Bank, 5-Star and PD sources said.

Another name being considered for the job is former Bank of Italy Deputy Governor Salvatore Rossi, the sources said.

5-Star leader Luigi Di Maio, who served as deputy prime minister, industry minister and labour minister in the previous administration, may become foreign minister in the new government, the sources added.

PD's president and former prime minister Paolo Gentiloni could be named as EU commissioner.

Italy's head of state is set to sign off on a new government on Wednesday after two rival political parties agreed an unlikely coalition that is expected to improve ties with the European Union and adopt a softer stance on immigration.

Italy's head of state is set to sign off on a new government on Wednesday after two rival political parties agreed an unlikely coalition that is expected to improve ties with the European Union and adopt a softer stance on immigration. Prime Minister Giuseppe Conte, who led the outgoing administration, is expected to unveil his new cabinet lineup and seek a new mandate from President Sergio Mattarella as early as Wednesday morning. The alliance between the anti-establishment 5-Star Movement and the centre-left Democratic Party (PD), formerly sworn enemies, followed a month of political upheaval triggered by the sudden collapse of the previous ruling alliance. The far-right League party of outgoing Interior Minister Matteo Salvini pulled out of its coalition with the 5-Star party, declaring it unworkable and calling for early elections in the hope that Salvini could return to power a prime minister. Salvini's gambit backfired badly, ushering in a new alliance that is expected to soften his confrontational stance on EU budget rules, which he blamed for Italy's weak economy, and his crackdown on migrants arriving by boat from Africa. Once Mattarella agrees to Conte's cabinet, the prime minister will then have to win confidence votes in both houses of parliament before the government can officially start work. 5-Star and PD unveiled on Tuesday a shared, 26-point policy programme for their mooted coalition, putting an expansionary 2020 budget at the top of their agenda but pleasing markets with a pledge draft a budget that would not endanger public finances. The coalition cleared its final hurdle on Tuesday night when members of 5-Star approved the marriage in an online vote. The key post of economy minister may go to the PD's Roberto Gualtieri, now head of the European Parliament's economic affairs commission, or to Dario Scannapieco, a former Treasury official who is vice president of the European Investment Bank, 5-Star and PD sources said. Another name being considered for the job is former Bank of Italy Deputy Governor Salvatore Rossi, the sources said. 5-Star leader Luigi Di Maio, who served as deputy prime minister, industry minister and labour minister in the previous administration, may become foreign minister in the new government, the sources added. PD's president and former prime minister Paolo Gentiloni could be named as EU commissioner.

Italian PM to set seal on new government, unveil new cabinet

Now two rival political parties have reached a deal to form a new coalition by Wednesday’s deadline and avoid elections.

Italy’s 5-Star makes deal with PD to avoid elections

Italy's president asked Giuseppe Conte to head up a coalition of the 5-Star Movement and opposition Democratic Party (PD) on Thursday, a move could that could improve in Italy's fractious relations with the European Union.

Markets welcomed the quick end to a three-week political crisis triggered by League leader Matteo Salvini, who pulled his hard-right party out of its governing alliance with 5-Star after weeks of public bickering.

Salvini had wanted fresh polls to capitalise on his party's success in European elections but his plan backfired as 5-Star and the PD, lagging the League in opinion surveys, set aside their long-standing antipathy to form a government.

Italy's 10-year borrowing costs fell to an all-time low at auction on Thursday on the news as the prospect of a snap election retreated.

Conte, who told reporters he would present a cabinet list to the president in the coming days, said his priority was to draft a 2020 budget.

"We must immediately get to work and draw up a budget to avert the VAT hike, protects savers and offers solid prospects for economic growth and social development," he said.

VAT will rise from Jan. 1 unless the government can find 23 billion euros ($26 billion) elsewhere.

The creation of a new government is not yet a done deal, however, and the two parties still need to agree a shared policy platform and divide up cabinet posts.

In a further complication, 5-Star has promised to put the deal with the PD to an online vote of its members. Many 5-Star supporters oppose a pact with the centre-left and a 'yes' vote is not a certainty.

Market reaction

However, investors brushed off those concerns. Conte was seen as a voice of reason within the previous 5-Star/League coalition and investors are betting Italy will get a fiscally prudent government that will avoid confrontation with Europe.

According to the financial daily Il Sole 24 Ore, an early draft of the incoming coalition's policy platform would see it ask the EU for flexibility on the 2020 budget deficit to "reinforce social cohesion" in Italy.

The EU imposes budget rules on member states with the aim of ensuring financial stability in the bloc. It has had a testy relationship with Rome under the outgoing administration, with League leader Salvini blaming EU rules for impoverishing Italians.

Salvini had promised swingeing tax cuts for 2020 that economists warned could put unsustainable pressure on Italy's towering debt mountain.

Italy's battered blue-chip index was headed for its best weekly performance in six months news of Conte's reappointment and bond markets pushed Italy's 10-year borrowing costs to an all-time low.

"We think it will be less challenging to agree on an agenda between M5S (5-Star) and PD because the priorities both political forces have set out seem broadly consistent in many areas, ranging from fiscal policy to Italy's relationship with the EU to a focus on a green economy," UBS Wealth Management Italy's Matteo Ramenghi said.

German Finance Minister Olaf Scholz said Conte's appointment was good news for Europe, adding: "I'm glad to see that the government crisis in Italy seems to have come to an end now and that a stable and new, progressive government can take the helm."

Conte, a quietly spoken academic with a penchant for smart suits, waistcoats and cufflinks, has enjoyed high poll ratings since he was plucked from relative obscurity 14 months ago to become premier. While he has no political affiliation he is considered close to 5-Star.

Italy's president asked Giuseppe Conte to head up a coalition of the 5-Star Movement and opposition Democratic Party (PD) on Thursday, a move could that could improve in Italy's fractious relations with the European Union.

Italy's president asked Giuseppe Conte to head up a coalition of the 5-Star Movement and opposition Democratic Party (PD) on Thursday, a move could that could improve in Italy's fractious relations with the European Union. Markets welcomed the quick end to a three-week political crisis triggered by League leader Matteo Salvini, who pulled his hard-right party out of its governing alliance with 5-Star after weeks of public bickering. Salvini had wanted fresh polls to capitalise on his party's success in European elections but his plan backfired as 5-Star and the PD, lagging the League in opinion surveys, set aside their long-standing antipathy to form a government. Italy's 10-year borrowing costs fell to an all-time low at auction on Thursday on the news as the prospect of a snap election retreated. Conte, who told reporters he would present a cabinet list to the president in the coming days, said his priority was to draft a 2020 budget. "We must immediately get to work and draw up a budget to avert the VAT hike, protects savers and offers solid prospects for economic growth and social development," he said. VAT will rise from Jan. 1 unless the government can find 23 billion euros ($26 billion) elsewhere. The creation of a new government is not yet a done deal, however, and the two parties still need to agree a shared policy platform and divide up cabinet posts. In a further complication, 5-Star has promised to put the deal with the PD to an online vote of its members. Many 5-Star supporters oppose a pact with the centre-left and a 'yes' vote is not a certainty. Market reaction However, investors brushed off those concerns. Conte was seen as a voice of reason within the previous 5-Star/League coalition and investors are betting Italy will get a fiscally prudent government that will avoid confrontation with Europe. According to the financial daily Il Sole 24 Ore, an early draft of the incoming coalition's policy platform would see it ask the EU for flexibility on the 2020 budget deficit to "reinforce social cohesion" in Italy. The EU imposes budget rules on member states with the aim of ensuring financial stability in the bloc. It has had a testy relationship with Rome under the outgoing administration, with League leader Salvini blaming EU rules for impoverishing Italians. Salvini had promised swingeing tax cuts for 2020 that economists warned could put unsustainable pressure on Italy's towering debt mountain. Italy's battered blue-chip index was headed for its best weekly performance in six months news of Conte's reappointment and bond markets pushed Italy's 10-year borrowing costs to an all-time low. "We think it will be less challenging to agree on an agenda between M5S (5-Star) and PD because the priorities both political forces have set out seem broadly consistent in many areas, ranging from fiscal policy to Italy's relationship with the EU to a focus on a green economy," UBS Wealth Management Italy's Matteo Ramenghi said. German Finance Minister Olaf Scholz said Conte's appointment was good news for Europe, adding: "I'm glad to see that the government crisis in Italy seems to have come to an end now and that a stable and new, progressive government can take the helm." Conte, a quietly spoken academic with a penchant for smart suits, waistcoats and cufflinks, has enjoyed high poll ratings since he was plucked from relative obscurity 14 months ago to become premier. While he has no political affiliation he is considered close to 5-Star.

Italy's Giuseppe  Conte gets green light to form new government

Italian President Sergio Mattarella begins talks with key players on Wednesday in a bid to end Italy's political limbo the day after Prime Minister Giuseppe Conte resigned.

Italian President Sergio Mattarella begins talks with key players on Wednesday in a bid to end Italy's political limbo the day after Prime Minister Giuseppe Conte resigned. The usually mild-mannered Conte handed in his resignation after lashing out at far-right Interior Minister Matteo Salvini for pursuing his own interests by pulling the plug on the ruling coalition with the anti-establishment Five Star Movement (M5S). The move left the eurozone's third-largest economy in a political vacuum until Mattarella decides whether to form a new coalition or call an election after talks with parties in the coming days. Meanwhile, Mattarella charged Conte with heading a caretaker administration, pending consultations on a new government which are set to begin at 1400 GMT. Italy's constitution says that Mattarella should first consult former presidents, meaning Senator Giorgio Napolitano, 94, who was in the job from 2006-2015. Those talks will be by telephone as Napolitano is not in Rome, and will be followed by talks with house speakers and the leaders of political groups. "It is irresponsible to initiate a government crisis," Conte told the Senate on Tuesday after Salvini tried to bring down the government in the hope of snap elections that could make him premier. Salvini plunged Italy into crisis with the shock announcement on August 8 that his anti-migrant League party was pulling out of the 14-month coalition government with the M5S. The League and M5S agreed for Conte to be premier after lengthy talks before forming a government in June last year. Snap election? A range of options are now open to Mattarella, with a new government possible as soon as Friday. A snap election, the forming of a new coalition without holding a new vote, and -- although unlikely -- the continuation of the current government will all be considered. "Making citizens vote is the essence of democracy, asking them to vote every year is irresponsible," Conte said as League senators booed and hissed. The political crisis has raised concerns about the Italian economy, whose debt ratio at 132 per cent of gross domestic product is the second-biggest in the eurozone after Greece. Since the unwieldy government was formed, uncertainty under the coalition has cost the country an extra five billion euros ($5.54 billion) in interest on its debt. Salvini's plan for a snap election -- more than three years early -- had envisioned a vote in October followed by him being crowned as prime minister. According to opinion polls, the League could form a coalition with the anti-immigration, anti-LGBT Brothers of Italy, and possibly Silvio Berlusconi's centre-right Forza Italia. But a bid by his rivals to put aside their differences and forge an alliance could derail Salvini's plan, with a coalition between M5S and the opposition centre-left Democratic Party (PD) being discussed. While there is bad blood between the two parties, M5S is languishing in the polls and wants to avoid an early election. Former PD premier Matteo Renzi on Tuesday said that he "would not be part" of a PD-M5S alliance, as many in the anti-establishment party resent him as part of the old elite. According to some analysts, Conte could also stay on as premier while trying to form an alliance with PD.

Italy's kingmaker Mattarella holds talks after PM Conte resigns

Italian Prime Minister Giuseppe Conte resigns before the trust vote. Watch this video to know more.

WION Fineprint: Italian Prime Minister resigns before trust vote

Italian Prime Minister&nbsp;Giuseppe&nbsp;Conte&nbsp;said Tuesday he would resign, lashing out at far-right Interior Minister <a href="https://www.wionews.com/world/explosive-situation-on-migrant-rescue-boat-in-limbo-off-italy-243498">Matteo Salvini</a> for pursuing his own interests by pulling the plug on the government coalition.

"I'm ending this government experience here... I will go to the president of the republic (Sergio Mattarella) to inform him of my resignation", after a Senate debate,&nbsp;Conte&nbsp;said after an almost hour-long speech to the chamber.

"It is irresponsible to initiate a government crisis,"&nbsp;Conte&nbsp;said after Salvini began his efforts to bring down the government in the hope of <a href="https://www.wionews.com/world/italys-deputy-prime-minister-salvinis-quest-for-snap-election-faces-hurdles-242302">snap elections</a> he hoped would make him premier.

"It shows personal and party interests,"&nbsp;Conte&nbsp;said of the end of the alliance between the anti-migrant League and the anti-establishment Five Star Movement.

Conte&nbsp;was speaking following a week of fallout from Salvini's decision to back out of the alliance on August 8, plunging the eurozone's third-largest economy into political turmoil.

Afer&nbsp;Conte&nbsp;announced his intention to resign, Salvini hit back saying: "Thank you, finally, I would do it all again."

Salvini "violated the solemn promise he took when the government began that if there were differences they should be discussed in good faith and with loyal collaboration,"&nbsp;Conte&nbsp;said as League senators booed and hissed.

"Making citizens vote is the essence of democracy, asking them to vote every year is irresponsible,"&nbsp;Conte&nbsp;added.

"I heard you calling for 'full powers' and invoke (demonstrations in) the piazzas to support you, which worries me,"&nbsp;Conte said.

Italian dictator Benito Mussolini in 1922 assumed so-called full powers to govern the country at his whim.

"We don't need full powers but leaders who have a sense of institutions,"&nbsp;Conte&nbsp;said.

A small group of protesters heckled League senators as they arrived at the Senate.

"Get out, buffoons, get out mafia," the protesters shouted, prompting a League senator to wave his middle finger at them.

Other protesters held banners reading "I'm with Salvini".

The likely end of the 14-month-old government would open the way for Mattarella to begin consultations with political parties, with a range of options available.&nbsp;

A snap election, the forming of a new coalition without holding a new vote and, although unlikely, the continuation of the current government, would all be considered.

Ahead of the premier's speech, protesters unfurled a banner near parliament that read: "Conte,<a href="https://www.wionews.com/world/tensions-build-on-migrant-ship-off-italy-10-jump-overboard-244377"> Italy</a> loves you".

But Salvini told Radio 24 that the other parties feared new elections: "What is the point of a government with everyone 'against Salvini'? A government must be strong to be able to act."

Debt laden economy

The political crisis has raised concerns about the Italian economy, whose debt ratio at 132 per cent of gross domestic product is the second-biggest in the eurozone after Greece.

Since the unwieldy government was formed in June 2018, uncertainty under the coalition has cost the country an extra five billion euros ($5.54 billion) in interest on its debt, the Il Sole 24 Ore financial newspaper reported.

Salvini's plan for a snap election -- more than three years early -- had envisioned a vote in October followed by him being crowned as prime minister.

According to opinion polls, the League could form a coalition with the anti-immigration, anti-LGBT Brothers of Italy, and possibly Silvio Berlusconi's centre-right Forza Italia.&nbsp;

But a bid by his rivals to put aside their differences and forge an alliance could derail Salvini's plan, with a coalition between M5S and the opposition centre-left Democratic Party (PD) being discussed.

While there is bad blood between the two parties, M5S is languishing in the polls and wants to avoid an early election.

A PD-M5S coalition could lead to the opposite of what Salvini intended -- with him out of government altogether instead of being its sole leader.

Untrustworthy Traitor

According to some analysts,&nbsp;Conte&nbsp;could also stay on as premier while trying to form an alliance with PD.

M5S leader Luigi Di Maio sent an open letter on Tuesday calling for&nbsp;Conte&nbsp;to take this option, describing him as a "rare pearl, a servant of the nation that Italy cannot lose".

Caught on the back foot, Salvini has sought to re-establish some coalition ties and said he would be willing to back an M5S proposal to cut the number of lawmakers from 950 to 605, but only if new elections were then swiftly held.

Salvini has been furious at the idea of being squeezed out by an M5S-PD alliance, saying he would get his supporters to "peacefully take to the streets" if it came about.

Salvini has also softened his tone regarding the premier, saying: "Conte&nbsp;remains my prime minister and my phone is always on."

But M5S founder, the comedian Beppe Grillo, has rejected talk of reconciliation with Salvini, whom he reportedly described as an "untrustworthy traitor".

Italian Prime Minister Giuseppe Conte said Tuesday he would resign, lashing out at far-right Interior Minister Matteo Salvini for pursuing his own interests by pulling the plug on the government coalition.

Italian Prime Minister Giuseppe Conte said Tuesday he would resign, lashing out at far-right Interior Minister Matteo Salvini for pursuing his own interests by pulling the plug on the government coalition. "I'm ending this government experience here... I will go to the president of the republic (Sergio Mattarella) to inform him of my resignation", after a Senate debate, Conte said after an almost hour-long speech to the chamber. "It is irresponsible to initiate a government crisis," Conte said after Salvini began his efforts to bring down the government in the hope of snap elections he hoped would make him premier. "It shows personal and party interests," Conte said of the end of the alliance between the anti-migrant League and the anti-establishment Five Star Movement. Conte was speaking following a week of fallout from Salvini's decision to back out of the alliance on August 8, plunging the eurozone's third-largest economy into political turmoil. Afer Conte announced his intention to resign, Salvini hit back saying: "Thank you, finally, I would do it all again." Salvini "violated the solemn promise he took when the government began that if there were differences they should be discussed in good faith and with loyal collaboration," Conte said as League senators booed and hissed. "Making citizens vote is the essence of democracy, asking them to vote every year is irresponsible," Conte added. "I heard you calling for 'full powers' and invoke (demonstrations in) the piazzas to support you, which worries me," Conte said. Italian dictator Benito Mussolini in 1922 assumed so-called full powers to govern the country at his whim. "We don't need full powers but leaders who have a sense of institutions," Conte said. A small group of protesters heckled League senators as they arrived at the Senate. "Get out, buffoons, get out mafia," the protesters shouted, prompting a League senator to wave his middle finger at them. Other protesters held banners reading "I'm with Salvini". The likely end of the 14-month-old government would open the way for Mattarella to begin consultations with political parties, with a range of options available. A snap election, the forming of a new coalition without holding a new vote and, although unlikely, the continuation of the current government, would all be considered. Ahead of the premier's speech, protesters unfurled a banner near parliament that read: "Conte, Italy loves you". But Salvini told Radio 24 that the other parties feared new elections: "What is the point of a government with everyone 'against Salvini'? A government must be strong to be able to act." Debt laden economy The political crisis has raised concerns about the Italian economy, whose debt ratio at 132 per cent of gross domestic product is the second-biggest in the eurozone after Greece. Since the unwieldy government was formed in June 2018, uncertainty under the coalition has cost the country an extra five billion euros ($5.54 billion) in interest on its debt, the Il Sole 24 Ore financial newspaper reported. Salvini's plan for a snap election -- more than three years early -- had envisioned a vote in October followed by him being crowned as prime minister. According to opinion polls, the League could form a coalition with the anti-immigration, anti-LGBT Brothers of Italy, and possibly Silvio Berlusconi's centre-right Forza Italia. But a bid by his rivals to put aside their differences and forge an alliance could derail Salvini's plan, with a coalition between M5S and the opposition centre-left Democratic Party (PD) being discussed. While there is bad blood between the two parties, M5S is languishing in the polls and wants to avoid an early election. A PD-M5S coalition could lead to the opposite of what Salvini intended -- with him out of government altogether instead of being its sole leader. Untrustworthy Traitor According to some analysts, Conte could also stay on as premier while trying to form an alliance with PD. M5S leader Luigi Di Maio sent an open letter on Tuesday calling for Conte to take this option, describing him as a "rare pearl, a servant of the nation that Italy cannot lose". Caught on the back foot, Salvini has sought to re-establish some coalition ties and said he would be willing to back an M5S proposal to cut the number of lawmakers from 950 to 605, but only if new elections were then swiftly held. Salvini has been furious at the idea of being squeezed out by an M5S-PD alliance, saying he would get his supporters to "peacefully take to the streets" if it came about. Salvini has also softened his tone regarding the premier, saying: "Conte remains my prime minister and my phone is always on." But M5S founder, the comedian Beppe Grillo, has rejected talk of reconciliation with Salvini, whom he reportedly described as an "untrustworthy traitor".

Italy Prime Minister Giuseppe Conte set to resign

Italian Prime Minister Giuseppe Conte warned Tuesday against possible military action in Libya, as the head of Tripoli's internationally recognised government, Fayez al-Sarraj, kicked off a European tour to drum up support against a possible attack by strongman Khalifa Haftar.

The contents of a meeting between Conte and Sarraj -- which Italian media said lasted about 90 minutes -- were not made public.

But Conte said on the sidelines of a separate event that "there is no military solution that could guarantee the stabilisation of the country".&nbsp;

"The military solution would, in any case, come at the cost of human lives and humanitarian crises," Conte said.

Sarraj, who heads the Tripoli-based Government of National Accord, is seeking support against an <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/libya-air-strikes-point-to-possible-uae-involvement-un-report-216539&amp;sa=U&amp;ved=2ahUKEwjswsz9wYniAhVOk3AKHRG5CiEQFjACegQIEBAC&amp;usg=AOvVaw2IK4v6ucD4bkCKeghspWPU">attack on Tripoli</a> by Haftar, who has urged his troops to "wipe out" government forces.

After his meeting with Conte, Sarraj was set to travel to Berlin to meet German Chancellor Angela Merkel later on Tuesday and then to Paris to meet French President Emmanuel Macron on Wednesday.&nbsp;

The visit to France, in particular, comes after the GNA repeatedly accused Paris of politically backing the assault which Haftar's self-styled Libyan National Army (LNA) launched on Tripoli on April 4.

Italy, Libya's former colonial power, is a key backer of the GNA and has echoed calls by Merkel for a "unified" European position and a political solution to resolve the crisis.

In a slip of the tongue, Conte said he had spoken "with president Haftar," but immediately corrected himself to say,&nbsp;"I've spoken with president Sarraj. I am confident I will be able to meet General Haftar soon. We are seeking to establish how and when."&nbsp;

Sarraj may also possibly travel to London as part of his tour.&nbsp;

Britain has pushed for a resolution at the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/united-nations-says-nearly-400-killed-by-libya-fighting-50000-displaced-215774&amp;sa=U&amp;ved=2ahUKEwjswsz9wYniAhVOk3AKHRG5CiEQFjAIegQIBBAC&amp;usg=AOvVaw2qYtucIJuRerjFShtQ1I7a">UN Security Council</a> demanding a ceasefire in Libya but its efforts have foundered amid divisions at the world body.

Italian Prime Minister Giuseppe Conte warned Tuesday against possible military action in Libya, as the head of Tripoli's internationally recognised government, Fayez al-Sarraj, kicked off a European tour to drum up support against a possible attack by strongman Khalifa Haftar.

Italian Prime Minister Giuseppe Conte warned Tuesday against possible military action in Libya, as the head of Tripoli's internationally recognised government, Fayez al-Sarraj, kicked off a European tour to drum up support against a possible attack by strongman Khalifa Haftar. The contents of a meeting between Conte and Sarraj -- which Italian media said lasted about 90 minutes -- were not made public. But Conte said on the sidelines of a separate event that "there is no military solution that could guarantee the stabilisation of the country". "The military solution would, in any case, come at the cost of human lives and humanitarian crises," Conte said. Sarraj, who heads the Tripoli-based Government of National Accord, is seeking support against an attack on Tripoli by Haftar, who has urged his troops to "wipe out" government forces. After his meeting with Conte, Sarraj was set to travel to Berlin to meet German Chancellor Angela Merkel later on Tuesday and then to Paris to meet French President Emmanuel Macron on Wednesday. The visit to France, in particular, comes after the GNA repeatedly accused Paris of politically backing the assault which Haftar's self-styled Libyan National Army (LNA) launched on Tripoli on April 4. Italy, Libya's former colonial power, is a key backer of the GNA and has echoed calls by Merkel for a "unified" European position and a political solution to resolve the crisis. In a slip of the tongue, Conte said he had spoken "with president Haftar," but immediately corrected himself to say, "I've spoken with president Sarraj. I am confident I will be able to meet General Haftar soon. We are seeking to establish how and when." Sarraj may also possibly travel to London as part of his tour. Britain has pushed for a resolution at the UN Security Council demanding a ceasefire in Libya but its efforts have foundered amid divisions at the world body.

Italy warns against military action in Libya

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/china-president-xi-jinping-sends-congratulations-on-inauguration-of-belt-and-road-studies-network-213383&amp;sa=U&amp;ved=2ahUKEwic6o-Uv-_hAhXGfn0KHTi7C0sQFjAIegQIABAC&amp;usg=AOvVaw2uXy34qTnwoBtC52QSo4Dg">Chinese President Xi Jinping</a> urged dozens of world leaders on Saturday to reject protectionism and invited more countries to participate in his global infrastructure project after seeking to ease concerns surrounding the programme.

Addressing 37 leaders from Europe, Africa, Asia and Latin America, Xi made a new pitch for his cherished<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/chinese-president-xi-defends-belt-and-road-says-not-exclusive-club-213575&amp;sa=U&amp;ved=2ahUKEwic6o-Uv-_hAhXGfn0KHTi7C0sQFjAJegQIAhAC&amp;usg=AOvVaw1XNKVrmHouJAvlZikr8Vv_"> Belt and Road Initiative (BRI) </a>as he kicked off the last day of a three-day forum.

The world's number two economy has been fighting a festering trade war with the United States for months, and Xi has long sought to take the mantle of the new world power open to multilateral cooperation and globalisation.

"We need to build an open world economy and reject protectionism," Xi told leaders including Russian President Vladimir Putin, Italian Prime Minister Giuseppe Conte and Pakistan's Imran Khan seated around a large round table at the idyllic Yanqi Lake retreat at the edge of Beijing.

A draft communique for the forum seen by AFP similarly pledges to "reject protectionism" and "unilateralism" in an oblique swipe at President Donald Trump's "America first" presidency. US officials were not sent to the summit.

Xi's signature foreign policy aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects -- with hundreds of billions of dollars in financing from Chinese banks.

"We need to encourage the full participation of more countries and companies, thus expanding the pie of common interests," Xi said.&nbsp;

But critics say BRI is a plan to boost Beijing's global influence, riddled with opaque deals favouring Chinese companies and saddling nations with debt and environmental damage.

The United States, India and some European nations have looked at the project with suspicion.

Rising resistance&nbsp;

So far Chinese companies and workers have emerged as the primary beneficiaries as they are tapped to build the China-financed infrastructure in other developing countries.

BRI projects have faced pushback in some countries. In Malaysia, Prime Minister Mahathir Mohamad cancelled some planned works and renegotiated a rail project cutting 30 per cent off the price tag.

But Mohamad and other leaders attending the summit had fulsome praise for BRI.

The draft communique says BRI will welcome developed countries and international investors to participate in the projects.

Xi batted away some concerns at the opening ceremony Friday, saying the BRI will have "zero tolerance" for corruption while vowing to ensure the financial sustainability of projects and further open China's economy.

"Faced with this rising resistance for the past year and a half and this debt image ... China is trying to reposition (BRI) and send a reassuring message," said Nadege Rolland, a senior fellow at the National Bureau of Asian Research, a US-based think tank.

But "let's see how it is put into practice," she said.

China's finance ministry released guidelines Thursday for assessing financial risk and debt sustainability to apply to projects in BRI countries.

But the document notes that countries already facing payment problems or in the process of restructuring payments "does not automatically mean that debt is unsustainable in a forward-looking sense."

During a state banquet Friday night, Xi called on attending world leaders to band together in the face of setbacks.

"Certainly, while building the Belt and Road Initiative, we will face difficulties and there will be twists and turns," he said.

"No matter a smooth or challenging way, we need to continue the spirit of partnership, not forget our initial intention of cooperation and move forward unwaveringly," he said.

Chinese President Xi Jinping urged dozens of world leaders on Saturday to reject protectionism and invited more countries to participate in his global infrastructure project after seeking to ease concerns surrounding the programme.

Chinese President Xi Jinping urged dozens of world leaders on Saturday to reject protectionism and invited more countries to participate in his global infrastructure project after seeking to ease concerns surrounding the programme. Addressing 37 leaders from Europe, Africa, Asia and Latin America, Xi made a new pitch for his cherished Belt and Road Initiative (BRI) as he kicked off the last day of a three-day forum. The world's number two economy has been fighting a festering trade war with the United States for months, and Xi has long sought to take the mantle of the new world power open to multilateral cooperation and globalisation. "We need to build an open world economy and reject protectionism," Xi told leaders including Russian President Vladimir Putin, Italian Prime Minister Giuseppe Conte and Pakistan's Imran Khan seated around a large round table at the idyllic Yanqi Lake retreat at the edge of Beijing. A draft communique for the forum seen by AFP similarly pledges to "reject protectionism" and "unilateralism" in an oblique swipe at President Donald Trump's "America first" presidency. US officials were not sent to the summit. Xi's signature foreign policy aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects -- with hundreds of billions of dollars in financing from Chinese banks. "We need to encourage the full participation of more countries and companies, thus expanding the pie of common interests," Xi said. But critics say BRI is a plan to boost Beijing's global influence, riddled with opaque deals favouring Chinese companies and saddling nations with debt and environmental damage. The United States, India and some European nations have looked at the project with suspicion. Rising resistance So far Chinese companies and workers have emerged as the primary beneficiaries as they are tapped to build the China-financed infrastructure in other developing countries. BRI projects have faced pushback in some countries. In Malaysia, Prime Minister Mahathir Mohamad cancelled some planned works and renegotiated a rail project cutting 30 per cent off the price tag. But Mohamad and other leaders attending the summit had fulsome praise for BRI. The draft communique says BRI will welcome developed countries and international investors to participate in the projects. Xi batted away some concerns at the opening ceremony Friday, saying the BRI will have "zero tolerance" for corruption while vowing to ensure the financial sustainability of projects and further open China's economy. "Faced with this rising resistance for the past year and a half and this debt image ... China is trying to reposition (BRI) and send a reassuring message," said Nadege Rolland, a senior fellow at the National Bureau of Asian Research, a US-based think tank. But "let's see how it is put into practice," she said. China's finance ministry released guidelines Thursday for assessing financial risk and debt sustainability to apply to projects in BRI countries. But the document notes that countries already facing payment problems or in the process of restructuring payments "does not automatically mean that debt is unsustainable in a forward-looking sense." During a state banquet Friday night, Xi called on attending world leaders to band together in the face of setbacks. "Certainly, while building the Belt and Road Initiative, we will face difficulties and there will be twists and turns," he said. "No matter a smooth or challenging way, we need to continue the spirit of partnership, not forget our initial intention of cooperation and move forward unwaveringly," he said.

China's Xi says to reject protectionism, open up Belt and Road

Chinese President Xi Jinping and Italian Prime Minister Giuseppe Conte held talks in Rome on Saturday on jointly elevating the China-Italy relations into a new era and witnessed the signing of a memorandum of understanding (MoU) to advance the construction of the Belt and Road.

During their talks, Xi noted that the <a href="https://www.wionews.com/world/italy-becomes-the-first-g7-nation-to-join-chinas-belt-and-road-initiative-205117">China-Italy relations</a> are rooted in the history of the two countries' thousand-year-old exchanges, with strong public support.

In recent years, the two countries have continuously deepened their communication and cooperation in various fields, which helped each other's social and economic development, Xi said.

Calling China and Italy important strategic partners to each other, Xi urged both sides to view and handle the bilateral ties from a strategic height with a long-term perspective.

The two countries should take the opportunities of the 15th anniversary of the China-Italy comprehensive strategic partnership this year and the 50th anniversary of China-Italy diplomatic relations next year to jointly elevate bilateral relations into a new era, and allow their practical cooperation fruits in various fields better serve the two peoples, Xi said.

With similar development goals, China and Italy have strong complementarity in economy and bright prospect of cooperation, the Chinese president said.

China is willing to work with the Italian side to comprehensively expand and deepen bilateral ties, he said.

Xi encouraged China and Italy to enhance top-level design, consolidate political basis, promote high-level exchanges, increase dialogue between various departments and on all levels, and continue to render mutual understanding and support on issues of each other's core interests and major concern.

China and Italy were at the two ends of the ancient Silk Road, thus they have every reason to carry out cooperation on the Belt and Road, Xi said. "We adhere to the principles of extensive consultation, joint contribution and shared benefits, follow the principle of transparency and openness, and aim for cooperation of win-win results."

He urged the two countries to take the opportunity of the inking of the intergovernmental MoU on jointly building the Belt and Road to strengthen the alignment of the Belt and Road Initiative (BRI) with Italy's plan to develop its northern ports and the InvestItalia program, and promote mutually beneficial cooperation in all fields.

The two countries should increase convergence of interests, optimize and upgrade their cooperation, and achieve more early results in priority areas such as space technology, infrastructure construction, transport, environment and energy, Xi said.

China and Italy should also strengthen communication and coordination on macroeconomic policy and jointly push forward third-market cooperation in such fields as energy, finance and infrastructure construction, he said.

Xi urged the two countries to take the opportunity of the culture and tourism year, to be held in each other's country in 2020, to forge friendly bonds of their world heritage sites and increase exchanges and cooperation between their museums, at local levels, and in sports and other sectors.

China and Italy should also join hands in advocating trade and investment liberalization and facilitation, continue to strengthen communication on major issues such as the United Nations affairs, WTO reform, climate change and global governance, and safeguard multilateralism together, he said.

The Chinese president noted that China sticks to further opening up and welcomes Italian and other countries' enterprises to invest and start business in China.

"We also encourage Chinese enterprises, especially high-tech companies, to invest and develop in Italy, and regard Italy as an important partner in cooperation on science and technology innovation," Xi told Conte.

The Chinese government has always encouraged Chinese enterprises to conduct overseas cooperation according to business principles and international rules, and on the basis of abiding by local laws, Xi said, urging the Italian government to continue to provide good business environment for Chinese investors.

Calling China and the European Union (EU) constructors of world peace, contributors to global development and protectors of international order, Xi said the two sides should follow the trend of the times featuring a world of multi-polarization and economic globalization, and push for the construction of an open world economy.

He urged the two sides to accelerate the negotiations on a China-EU investment agreement, enhance the synergy of the BRI and the EU's development strategies, and boost communication and coordination on major international and regional issues.

Xi said he hopes that the Italian side would continue to play an active role in deepening China-EU dialogue and cooperation in all fields and promote independent and stable development of China-EU ties.

For his part, Conte said Xi's visit to Italy bears historic significance and will lead the Italy-China relations to a higher level.

Noting that the two countries have a thousand-year-old history of exchanges, the Italian prime minister said the two ancient civilizations have interwoven with each other, with long-standing exchanges in economy, trade and culture, which served as an important foundation for the long-term development of their friendly cooperation.

Italy attaches great importance to its relations with China, and is willing to deepen the Italy-China comprehensive strategic partnership and expand cooperation in such fields as economy, trade, energy, agriculture, culture, tourism and aviation, on the occasion of the upcoming 50th anniversary of their diplomatic ties, Conte said.

With a special geographical advantage in building connectivity, Italy is glad to seize the historic opportunity in joining the Belt and Road construction, Conte said, adding that he strongly believes that it will help fully explore the potential of Italy-China cooperation.

The prime minister said he is looking forward to attending the second Belt and Road Forum for International Cooperation, adding that Italy welcomes Chinese enterprises to invest in Italy and realize mutual benefit and win-win outcomes.

Italy stands firm in supporting multilateralism and free trade, and ready to closely communicate and coordinate with China so as to promote healthy and stable development of EU-China ties, he said.

After their talks, the two leaders witnessed the signing of multiple bilateral cooperation documents, including the MoU on jointly advancing the construction of the Belt and Road, and the document on the return of Chinese relics confiscated by Italy. They also paid a visit together to see the Chinese relics.

Xi arrived in Rome Thursday for a state visit to Italy, the first stop of his three-nation Europe tour, which will also take him to Monaco and France.

Chinese President Xi Jinping and Italian Prime Minister Giuseppe Conte held talks in Rome on Saturday on jointly elevating the China-Italy relations into a new era and witnessed the signing of a memorandum of understanding (MoU) to advance the construction of the Belt and Road.

Chinese President Xi Jinping and Italian Prime Minister Giuseppe Conte held talks in Rome on Saturday on jointly elevating the China-Italy relations into a new era and witnessed the signing of a memorandum of understanding (MoU) to advance the construction of the Belt and Road. During their talks, Xi noted that the China-Italy relations are rooted in the history of the two countries' thousand-year-old exchanges, with strong public support. In recent years, the two countries have continuously deepened their communication and cooperation in various fields, which helped each other's social and economic development, Xi said. Calling China and Italy important strategic partners to each other, Xi urged both sides to view and handle the bilateral ties from a strategic height with a long-term perspective. The two countries should take the opportunities of the 15th anniversary of the China-Italy comprehensive strategic partnership this year and the 50th anniversary of China-Italy diplomatic relations next year to jointly elevate bilateral relations into a new era, and allow their practical cooperation fruits in various fields better serve the two peoples, Xi said. With similar development goals, China and Italy have strong complementarity in economy and bright prospect of cooperation, the Chinese president said. China is willing to work with the Italian side to comprehensively expand and deepen bilateral ties, he said. Xi encouraged China and Italy to enhance top-level design, consolidate political basis, promote high-level exchanges, increase dialogue between various departments and on all levels, and continue to render mutual understanding and support on issues of each other's core interests and major concern. China and Italy were at the two ends of the ancient Silk Road, thus they have every reason to carry out cooperation on the Belt and Road, Xi said. "We adhere to the principles of extensive consultation, joint contribution and shared benefits, follow the principle of transparency and openness, and aim for cooperation of win-win results." He urged the two countries to take the opportunity of the inking of the intergovernmental MoU on jointly building the Belt and Road to strengthen the alignment of the Belt and Road Initiative (BRI) with Italy's plan to develop its northern ports and the InvestItalia program, and promote mutually beneficial cooperation in all fields. The two countries should increase convergence of interests, optimize and upgrade their cooperation, and achieve more early results in priority areas such as space technology, infrastructure construction, transport, environment and energy, Xi said. China and Italy should also strengthen communication and coordination on macroeconomic policy and jointly push forward third-market cooperation in such fields as energy, finance and infrastructure construction, he said. Xi urged the two countries to take the opportunity of the culture and tourism year, to be held in each other's country in 2020, to forge friendly bonds of their world heritage sites and increase exchanges and cooperation between their museums, at local levels, and in sports and other sectors. China and Italy should also join hands in advocating trade and investment liberalization and facilitation, continue to strengthen communication on major issues such as the United Nations affairs, WTO reform, climate change and global governance, and safeguard multilateralism together, he said. The Chinese president noted that China sticks to further opening up and welcomes Italian and other countries' enterprises to invest and start business in China. "We also encourage Chinese enterprises, especially high-tech companies, to invest and develop in Italy, and regard Italy as an important partner in cooperation on science and technology innovation," Xi told Conte. The Chinese government has always encouraged Chinese enterprises to conduct overseas cooperation according to business principles and international rules, and on the basis of abiding by local laws, Xi said, urging the Italian government to continue to provide good business environment for Chinese investors. Calling China and the European Union (EU) constructors of world peace, contributors to global development and protectors of international order, Xi said the two sides should follow the trend of the times featuring a world of multi-polarization and economic globalization, and push for the construction of an open world economy. He urged the two sides to accelerate the negotiations on a China-EU investment agreement, enhance the synergy of the BRI and the EU's development strategies, and boost communication and coordination on major international and regional issues. Xi said he hopes that the Italian side would continue to play an active role in deepening China-EU dialogue and cooperation in all fields and promote independent and stable development of China-EU ties. For his part, Conte said Xi's visit to Italy bears historic significance and will lead the Italy-China relations to a higher level. Noting that the two countries have a thousand-year-old history of exchanges, the Italian prime minister said the two ancient civilizations have interwoven with each other, with long-standing exchanges in economy, trade and culture, which served as an important foundation for the long-term development of their friendly cooperation. Italy attaches great importance to its relations with China, and is willing to deepen the Italy-China comprehensive strategic partnership and expand cooperation in such fields as economy, trade, energy, agriculture, culture, tourism and aviation, on the occasion of the upcoming 50th anniversary of their diplomatic ties, Conte said. With a special geographical advantage in building connectivity, Italy is glad to seize the historic opportunity in joining the Belt and Road construction, Conte said, adding that he strongly believes that it will help fully explore the potential of Italy-China cooperation. The prime minister said he is looking forward to attending the second Belt and Road Forum for International Cooperation, adding that Italy welcomes Chinese enterprises to invest in Italy and realize mutual benefit and win-win outcomes. Italy stands firm in supporting multilateralism and free trade, and ready to closely communicate and coordinate with China so as to promote healthy and stable development of EU-China ties, he said. After their talks, the two leaders witnessed the signing of multiple bilateral cooperation documents, including the MoU on jointly advancing the construction of the Belt and Road, and the document on the return of Chinese relics confiscated by Italy. They also paid a visit together to see the Chinese relics. Xi arrived in Rome Thursday for a state visit to Italy, the first stop of his three-nation Europe tour, which will also take him to Monaco and France.

Xi Jinping, Giuseppe Conte hold talks on elevating China-Italy ties into new era

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

Prime Minister Giuseppe Conte is to sign a memorandum of understanding with Xi on Saturday for Italy to join the $1 trillion Belt and Road Initiative, the first G7 member to do so, despite apparent divisions within the ruling coalition.

Italy on Friday rolled out the red carpet for Xi, who met his Italian counterpart Sergio Mattarella amid great pomp, and was due to head to parliament in the afternoon.

Around 1,000 extra police have been deployed around Rome for the state visit before Xi heads to Palermo, where his singer wife Peng Liyuan reportedly wants to see the Teatro Massimo opera house.&nbsp;

In what some perceived as a snub, Italy's far-right Deputy Prime Minister Matteo Salvini said he would not attend Saturday's state dinner for Xi at Mattarella's Quirinal Palace.

Salvini has said Italy would be "no-one's colony" and urged caution about using telecom giant Huawei's next-generation 5G mobile technology, while coalition partner Luigi Di Maio is keener for Chinese partnerships.

The United States has warned European allies that Huawei could use its 5G technology as a "backdoor" for spying, while China has lashed out at "immoral" attacks.

NATO member Italy's plan to join China's ambitious maritime, rail and road venture, which critics warn mainly benefits Chinese firms, has raised eyebrows among Western allies and within Italy.

"Today we say 'Italy first' in trade relations, while remaining US allies, in NATO and in the EU," Deputy Prime Minister Di Maio of the anti-establishment Five Star Movement said on the sidelines of a China-Italy business forum on Friday.

Allies' concerns about 5G could be allayed by strengthening the Italian government's so-called 'golden powers' to keep control of strategic industries and infrastructure, Di Maio said.

- 'Trojan horse' - 
Debt-ridden Italy is technically in recession and keen to have more business with China.

White House official Garrett Marquis last week tweeted that there was "no need" for Italy to endorse "China's infrastructure vanity project".

Xi's visit comes a week after the European Union released a 10-point plan outlining a shift to more assertive relations with Beijing, warning that China was a "rival" to the bloc as well as its biggest trading partner.

France on Thursday announced that President Emmanuel Macron will hold trade and climate talks on Tuesday with Xi, German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker.

As he arrived for the EU summit in Brussels, Macron welcomed what he called Europe's "awakening" to the challenge posed by China.

But his office struck a more conciliatory tone in announcing Tuesday's talks, saying it was an opportunity to explain Europe's strategy and seek "points of convergence between Europe and China".

The meeting comes ahead of a China-EU summit in Brussels next month, as the bloc struggles to forge Europe-wide China policies.

- Strategic ports - 
Beijing is particularly interested in investing in Italian ports to help funnel its products into Europe, amid warnings that Rome must avoid the model of the Greek port of Piraeus, which was taken over by Chinese shipping giant Cosco in 2016.

Supporters of the non-binding MoU said that it will lead to China complying with European Union standards, including on the environment and intellectual property, and cannot be compared to debt-inducing deals Beijing has signed with developing countries.

Despite apparent warming ties, Xi is not expected to meet Pope Francis.&nbsp;

The Vatican has diplomatic relations with Taiwan and not Beijing, so the encounter would be unlikely despite an agreement on appointing bishops in China signed last year.

Xi heads to Monaco on Sunday and then on to France to cap his European tour.

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project. Prime Minister Giuseppe Conte is to sign a memorandum of understanding with Xi on Saturday for Italy to join the $1 trillion Belt and Road Initiative, the first G7 member to do so, despite apparent divisions within the ruling coalition. Italy on Friday rolled out the red carpet for Xi, who met his Italian counterpart Sergio Mattarella amid great pomp, and was due to head to parliament in the afternoon. Around 1,000 extra police have been deployed around Rome for the state visit before Xi heads to Palermo, where his singer wife Peng Liyuan reportedly wants to see the Teatro Massimo opera house. In what some perceived as a snub, Italy's far-right Deputy Prime Minister Matteo Salvini said he would not attend Saturday's state dinner for Xi at Mattarella's Quirinal Palace. Salvini has said Italy would be "no-one's colony" and urged caution about using telecom giant Huawei's next-generation 5G mobile technology, while coalition partner Luigi Di Maio is keener for Chinese partnerships. The United States has warned European allies that Huawei could use its 5G technology as a "backdoor" for spying, while China has lashed out at "immoral" attacks. NATO member Italy's plan to join China's ambitious maritime, rail and road venture, which critics warn mainly benefits Chinese firms, has raised eyebrows among Western allies and within Italy. "Today we say 'Italy first' in trade relations, while remaining US allies, in NATO and in the EU," Deputy Prime Minister Di Maio of the anti-establishment Five Star Movement said on the sidelines of a China-Italy business forum on Friday. Allies' concerns about 5G could be allayed by strengthening the Italian government's so-called 'golden powers' to keep control of strategic industries and infrastructure, Di Maio said. - 'Trojan horse' - Debt-ridden Italy is technically in recession and keen to have more business with China. White House official Garrett Marquis last week tweeted that there was "no need" for Italy to endorse "China's infrastructure vanity project". Xi's visit comes a week after the European Union released a 10-point plan outlining a shift to more assertive relations with Beijing, warning that China was a "rival" to the bloc as well as its biggest trading partner. France on Thursday announced that President Emmanuel Macron will hold trade and climate talks on Tuesday with Xi, German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker. As he arrived for the EU summit in Brussels, Macron welcomed what he called Europe's "awakening" to the challenge posed by China. But his office struck a more conciliatory tone in announcing Tuesday's talks, saying it was an opportunity to explain Europe's strategy and seek "points of convergence between Europe and China". The meeting comes ahead of a China-EU summit in Brussels next month, as the bloc struggles to forge Europe-wide China policies. - Strategic ports - Beijing is particularly interested in investing in Italian ports to help funnel its products into Europe, amid warnings that Rome must avoid the model of the Greek port of Piraeus, which was taken over by Chinese shipping giant Cosco in 2016. Supporters of the non-binding MoU said that it will lead to China complying with European Union standards, including on the environment and intellectual property, and cannot be compared to debt-inducing deals Beijing has signed with developing countries. Despite apparent warming ties, Xi is not expected to meet Pope Francis. The Vatican has diplomatic relations with Taiwan and not Beijing, so the encounter would be unlikely despite an agreement on appointing bishops in China signed last year. Xi heads to Monaco on Sunday and then on to France to cap his European tour.

China's new Silk Road gets bumpy as Xi Jinping visits Italy

China's "Belt and Road" infrastructure plan could be good news for Italy, Prime Minister Giuseppe Conte said on Friday, confirming that he might sign an accord with Chinese President Xi Jinping later this month.

Xi is due to travel to Italy from March 22-24 and Conte said Rome and Beijing were looking to agree to a framework deal during the state visit, despite reports that the United States is concerned at the prospect of a key ally joining the venture.

"With all the necessary precautions, Italy`s accession to a new silk route represents an opportunity for our country," Conte told a foreign policy seminar in the northern city of Genoa.

"It won`t mean that the next day we will be forced to do anything. It will allow us to enter into this project and have a dialogue," he added.

The Belt and Road Initiative (BRI), championed by Xi, aims to link China by sea and land with southeast and central Asia, the Middle East, Europe, and Africa, through an infrastructure network on the lines of the old Silk Road.&nbsp;

Aside from boosting trade and investment, Xi aims to advance exchanges in areas such as science, technology, and culture.

Conte said he planned to attend a BRI summit in China in April and promised to bring European Union trade standards to the ambitious project.

"This is a strategic choice for the country .. and such choices need coordinating with traditional partners. Dialogue with the United States, for example, is constant," he said, dismissing suggestions Washington could penalize Italy.

The United States has recently expressed particular concern over two of China’s biggest telecom network equipment companies, Huawei Technologies Cos Ltd and ZTE Corp, saying they work at the behest of the Chinese government and that their equipment could be used to spy on the West.

Both companies have denied that their products are used to spy. Conte said he agreed on such concerns needed to be taken seriously and that Rome had to be cautious, but he did not signal he was preparing to impose fresh curbs on the firms.

"Huawei and ZTE have been operating for years in Italy in an advantageous fashion," he said.

Also read -&nbsp;<a href="http://www.wionews.com/world/italy-plans-to-join-chinas-belt-and-road-initiative-report-201456">Italy plans to join China's Belt and Road Initiative: Report</a>

A number of European Union states have signed BRI MOUs with China, including Croatia, Czech Republic, Hungary, Greece, Malta, Poland, and Portugal. If Italy signs, it would be the first Group of Seven major industrialized nation to do so.

The Financial Times reported on Wednesday that the United States was irritated by the prospect of Italy joining the BRI, and had warned the project could significantly damage Rome`s international image.

Italy fell into recession at the end of 2018 for the third time in a decade and the government is eager to find ways to boost the economy and revive the stalled construction sector.

China's "Belt and Road" infrastructure plan could be good news for Italy, Prime Minister Giuseppe Conte said on Friday, confirming that he might sign an accord with Chinese President Xi Jinping later this month.

China's "Belt and Road" infrastructure plan could be good news for Italy, Prime Minister Giuseppe Conte said on Friday, confirming that he might sign an accord with Chinese President Xi Jinping later this month. Xi is due to travel to Italy from March 22-24 and Conte said Rome and Beijing were looking to agree to a framework deal during the state visit, despite reports that the United States is concerned at the prospect of a key ally joining the venture. "With all the necessary precautions, Italy`s accession to a new silk route represents an opportunity for our country," Conte told a foreign policy seminar in the northern city of Genoa. "It won`t mean that the next day we will be forced to do anything. It will allow us to enter into this project and have a dialogue," he added. The Belt and Road Initiative (BRI), championed by Xi, aims to link China by sea and land with southeast and central Asia, the Middle East, Europe, and Africa, through an infrastructure network on the lines of the old Silk Road. Aside from boosting trade and investment, Xi aims to advance exchanges in areas such as science, technology, and culture. Conte said he planned to attend a BRI summit in China in April and promised to bring European Union trade standards to the ambitious project. "This is a strategic choice for the country .. and such choices need coordinating with traditional partners. Dialogue with the United States, for example, is constant," he said, dismissing suggestions Washington could penalize Italy. The United States has recently expressed particular concern over two of China’s biggest telecom network equipment companies, Huawei Technologies Cos Ltd and ZTE Corp, saying they work at the behest of the Chinese government and that their equipment could be used to spy on the West. Both companies have denied that their products are used to spy. Conte said he agreed on such concerns needed to be taken seriously and that Rome had to be cautious, but he did not signal he was preparing to impose fresh curbs on the firms. "Huawei and ZTE have been operating for years in Italy in an advantageous fashion," he said. Also read - Italy plans to join China's Belt and Road Initiative: Report A number of European Union states have signed BRI MOUs with China, including Croatia, Czech Republic, Hungary, Greece, Malta, Poland, and Portugal. If Italy signs, it would be the first Group of Seven major industrialized nation to do so. The Financial Times reported on Wednesday that the United States was irritated by the prospect of Italy joining the BRI, and had warned the project could significantly damage Rome`s international image. Italy fell into recession at the end of 2018 for the third time in a decade and the government is eager to find ways to boost the economy and revive the stalled construction sector.

China's Belt and Road plan could be good for Italy - Italian Prime Minister

The Italian economy contracted in the fourth quarter of 2018, plunging the country into a technical recession, official data showed Thursday.

The 0.2 per cent contraction — following a 0.1 per cent fall in the third quarter — will put pressure on the populist government in the eurozone's third-largest economy, which took power in June on the back of big-spending electoral promises.

Italy's Prime Minister Giuseppe Conte had anticipated the bad news on Wednesday during a business conference in Milan.

"Analysts tell us we'll likely still suffer a bit at the start of this year," he said, pointing the finger at a slowdown in China and Germany which are hurting Italian exports.

"But all the elements are there to recover in the second half," Conte added.

The coalition government of the anti-establishment Five Star Movement (M5S) and the far-right League party was forced to water down its ambitious and costly budget in December to avoid being punished by the European Commission and the financial markets.

A slowdown will make it even harder to follow through on expensive vote-winning measures both parties promised their bases, from reform to the pension system and income support for the poor.

Thursday's data "reflect a marked worsening of the industrial sector's performance, and of a negative contribution of agriculture," national statistics institute Istat said.

The institute had earlier released December's unemployment rate, which fell to 10.3 per cent from 10.5 per cent, a positive sign. The jobless numbers rose 0.1 per cent for young people aged 15 to 24, however, bringing the rate to 31.9 per cent.

The Italian economy contracted in the fourth quarter of 2018, plunging the country into a technical recession, official data showed Thursday. The 0.2 per cent contraction — following a 0.

The Italian economy contracted in the fourth quarter of 2018, plunging the country into a technical recession, official data showed Thursday. The 0.2 per cent contraction — following a 0.1 per cent fall in the third quarter — will put pressure on the populist government in the eurozone's third-largest economy, which took power in June on the back of big-spending electoral promises. Italy's Prime Minister Giuseppe Conte had anticipated the bad news on Wednesday during a business conference in Milan. "Analysts tell us we'll likely still suffer a bit at the start of this year," he said, pointing the finger at a slowdown in China and Germany which are hurting Italian exports. "But all the elements are there to recover in the second half," Conte added. The coalition government of the anti-establishment Five Star Movement (M5S) and the far-right League party was forced to water down its ambitious and costly budget in December to avoid being punished by the European Commission and the financial markets. A slowdown will make it even harder to follow through on expensive vote-winning measures both parties promised their bases, from reform to the pension system and income support for the poor. Thursday's data "reflect a marked worsening of the industrial sector's performance, and of a negative contribution of agriculture," national statistics institute Istat said. The institute had earlier released December's unemployment rate, which fell to 10.3 per cent from 10.5 per cent, a positive sign. The jobless numbers rose 0.1 per cent for young people aged 15 to 24, however, bringing the rate to 31.9 per cent.

Italy in recession after economy shrinks in Q4 2018

In a big announcement from the 13th G20 summit in Argentina's&nbsp;Buenos Aires, Prime Minister Narendra Modi announced that India will host the&nbsp;G20 Summit in 2022.

India will be hosting the summit in the 75th Independence anniversary year.

Speaking at the G20 summit, PM Modi said, "It's India's 75th Independence Day in 2022 and we had requested Italy if we can get '22 instead of '21 (for hosting G20 summit). They accepted our request, others accepted it too. I am grateful and I invite leadership from across the world to come to India in 2022".

Italy and India swapped year for hosting G20 summit. Italy will be hosting G20 Summit in 2021.

Italian PM Giuseppe Conte said it was "very important for India to celebrate its 75th anniversary of Independence with our presence and therefore I decide to accept the swap".

In Asia, South Korea hosted G20 in 2010, followed by Turkey in 2015 and China in 2016. Next year the summit&nbsp;will take place in Japan followed by Saudi Arabia.

This year's summit, the 13th G20 summit, was hosted by Argentina. This was the first time that the summit had taken place in a country of&nbsp;South American continent.&nbsp;

In a big announcement from the 13th G20 summit in Argentina's Buenos Aires, Prime Minister Narendra Modi announced that India will host the G20 Summit in 2022. India will be hosting the summit in the 75th Independence anniversary year.

In a big announcement from the 13th G20 summit in Argentina's Buenos Aires, Prime Minister Narendra Modi announced that India will host the G20 Summit in 2022. India will be hosting the summit in the 75th Independence anniversary year. Speaking at the G20 summit, PM Modi said, "It's India's 75th Independence Day in 2022 and we had requested Italy if we can get '22 instead of '21 (for hosting G20 summit). They accepted our request, others accepted it too. I am grateful and I invite leadership from across the world to come to India in 2022". Italy and India swapped year for hosting G20 summit. Italy will be hosting G20 Summit in 2021. Italian PM Giuseppe Conte said it was "very important for India to celebrate its 75th anniversary of Independence with our presence and therefore I decide to accept the swap". In Asia, South Korea hosted G20 in 2010, followed by Turkey in 2015 and China in 2016. Next year the summit will take place in Japan followed by Saudi Arabia. This year's summit, the 13th G20 summit, was hosted by Argentina. This was the first time that the summit had taken place in a country of South American continent.

India to host G20 summit in 2022, PM Modi announces in Argentina

Italian Prime Minister Giuseppe Conte will be on a day-long maiden visit to India today during which he will hold talks with PM Narendra Modi to boost cooperation in key areas such as trade and investment, besides participating in the India-Italy Technology Summit.

The highlight of the visit will be the Italian prime minister's participation at the 24th edition of the India-Italy Technology Summit which is being organised by the Department of Science and Technology (DST) in partnership with the Confederation of Indian Industry (CII).

The summit will focus on a number of areas including healthcare, aerospace, education, clean technology, renewable energy and information and communication technology.

During the Conte-Modi talks, focus is expected to be on discussing ways to boost trade and investment.<iframe data-google-container-id="6" data-load-complete="true" frameborder="0" height="1" id="google_ads_iframe_/1068322/NDTV_News_ROS_Native_Outstream_0" marginheight="0" marginwidth="0" name="google_ads_iframe_/1068322/NDTV_News_ROS_Native_Outstream_0" scrolling="no" srcdoc="" title="3rd party ad content" width="1"></iframe>

The bilateral trade between the countries increased to US $10.5 billion in 2017-18 from US $8.8 billion in the previous fiscal.

Italy is India's fifth largest trading partner in the European Union and the annual trade turnover between the two countries was USD 10.4 billion in 2017-18. Over 600 Italian companies are operating in India.

Italian Prime Minister Giuseppe Conte will be on a day-long maiden visit to India today during which he will hold talks with PM Narendra Modi to boost cooperation in key areas such as trade and investment, besides participating in the India-Italy Technology Summit.

Italian Prime Minister Giuseppe Conte will be on a day-long maiden visit to India today during which he will hold talks with PM Narendra Modi to boost cooperation in key areas such as trade and investment, besides participating in the India-Italy Technology Summit. The highlight of the visit will be the Italian prime minister's participation at the 24th edition of the India-Italy Technology Summit which is being organised by the Department of Science and Technology (DST) in partnership with the Confederation of Indian Industry (CII). The summit will focus on a number of areas including healthcare, aerospace, education, clean technology, renewable energy and information and communication technology. During the Conte-Modi talks, focus is expected to be on discussing ways to boost trade and investment. The bilateral trade between the countries increased to US $10.5 billion in 2017-18 from US $8.8 billion in the previous fiscal. Italy is India's fifth largest trading partner in the European Union and the annual trade turnover between the two countries was USD 10.4 billion in 2017-18. Over 600 Italian companies are operating in India.

On Italy prime minister-PM Modi bilateral talks, trade, energy on agenda

Italian PM Giuseppe Conte hold talks with PM Modi; likely to sign deals

Italian Prime Minister Giuseppe Conte will be visiting India on October 30.

Conte will be accompanied by a delegation that will participate in the 24th edition of the DST-CII India-Italy Technology Summit 2018.

During the visit, Conte will hold bilateral talks with Prime Minister Narendra Modi and the two leaders will later address the valedictory session of the Technology Summit.

The summit is organised by the Department of Science &amp; Technology (DST) of the Government of India in partnership with the Confederation of Indian Industry (CII).

This edition of the summit will focus on seven areas viz. Cleantech, Renewable, ICT, Healthcare, Aerospace, Education and Cultural Heritage.

The objective of the Summit is to facilitate technology transfers, joint ventures, R&amp;D, and market access between industry and research institutions in India and Italy.

Conte's India visit will be a part of the ongoing celebrations to commemorate the 70th anniversary of the establishment of diplomatic relations between India and Italy.

Italian Prime Minister Giuseppe Conte will be visiting India on October 30. Conte will be accompanied by a delegation that will participate in the 24th edition of the DST-CII India-Italy Technology Summit 2018.

Italian Prime Minister Giuseppe Conte will be visiting India on October 30. Conte will be accompanied by a delegation that will participate in the 24th edition of the DST-CII India-Italy Technology Summit 2018. During the visit, Conte will hold bilateral talks with Prime Minister Narendra Modi and the two leaders will later address the valedictory session of the Technology Summit. The summit is organised by the Department of Science & Technology (DST) of the Government of India in partnership with the Confederation of Indian Industry (CII). This edition of the summit will focus on seven areas viz. Cleantech, Renewable, ICT, Healthcare, Aerospace, Education and Cultural Heritage. The objective of the Summit is to facilitate technology transfers, joint ventures, R&D, and market access between industry and research institutions in India and Italy. Conte's India visit will be a part of the ongoing celebrations to commemorate the 70th anniversary of the establishment of diplomatic relations between India and Italy.

Italian prime minister Giuseppe Conte to visit India

French President Emmanuel Macron said Thursday he will huddle with the leaders of Britain, Germany and Italy to forge a common approach on how to handle Donald Trump at the Group of Seven summit in Canada.

Macron will meet with British Prime Minister Theresa May, German Chancellor Angela Merkel and new Italian premier Giuseppe Conte on Friday at 10:30 am (1430 GMT), just before the formal start of the summit in La Malbaie.

European Commission chief Jean-Claude Juncker and EU president Donald Tusk will also attend, the French leader said.

Macron will meet with British Prime Minister Theresa May, German Chancellor Angela Merkel and new Italian premier Giuseppe Conte on Friday

French President Emmanuel Macron said Thursday he will huddle with the leaders of Britain, Germany and Italy to forge a common approach on how to handle Donald Trump at the Group of Seven summit in Canada. Macron will meet with British Prime Minister Theresa May, German Chancellor Angela Merkel and new Italian premier Giuseppe Conte on Friday at 10:30 am (1430 GMT), just before the formal start of the summit in La Malbaie. European Commission chief Jean-Claude Juncker and EU president Donald Tusk will also attend, the French leader said.

Macron to meet Britain, Italy, German leaders before G7

Italy's newly sworn-in Prime Minister Giuseppe Conte said his government wanted to reduce the country's huge public debt "through growth", not austerity, as he made his first speech to the Italian Senate.

"We want to reduce our public debt, but we want to do so with growth and not with austerity measures," he told senators during his policy speech, after which he will ask for parliament's confidence.

Conte also announced his support for&nbsplifting sanctions against Russia.

Italy’s new anti-establishment government took power on Friday, ending months of deadlock that saw the eurozone’s third largest economy narrowly avoid snap elections after a last-gasp coalition deal.

New Prime Minister Giuseppe Conte, 53, was sworn in at the head of the first populist government in an EU founding member that was forged by the Five Star Movement and the far-right League.

New Prime Minister Giuseppe Conte, 53, was sworn in at the head of the first populist government in an EU founding member that was forged by the Five Star Movement and the far-right League

Italy's newly sworn-in Prime Minister Giuseppe Conte said his government wanted to reduce the country's huge public debt "through growth", not austerity, as he made his first speech to the Italian Senate. "We want to reduce our public debt, but we want to do so with growth and not with austerity measures," he told senators during his policy speech, after which he will ask for parliament's confidence. Conte also announced his support for&nbsplifting sanctions against Russia. Italy’s new anti-establishment government took power on Friday, ending months of deadlock that saw the eurozone’s third largest economy narrowly avoid snap elections after a last-gasp coalition deal. New Prime Minister Giuseppe Conte, 53, was sworn in at the head of the first populist government in an EU founding member that was forged by the Five Star Movement and the far-right League.

Italian PM says yes to debt reduction but through growth

Italy's new prime minister Giuseppe Conte mostly kept quiet on his full first day in office Saturday, while his two powerful deputies took centre stage in setting the tone of the populist government's policy.

Conte, a political novice, was finally sworn in on Friday as the head of a government of ministers from the anti-establishment Five Star Movement and the far-right League, ending months of uncertainty since elections in March.

But Conte was a compromise candidate between Five Star leader Luigi Di Maio and the League's Matteo Salvini -- both of whom are now his deputy prime ministers -- and he will have to walk a delicate line to push through the anti-austerity and pro-security promises their populist parties campaigned on.

The 53-year-old academic also inherited a daunting list of issues from his predecessor Paolo Gentiloni, including the financial travails of companies such as Ilva and Alitalia, a Group of Seven summit in Canada and a key EU summit at the end of the month, as well as the thorny question of immigration.

Immigration is the bugbear of Conte's interior minister, Salvini, the 45-year-old leader of the anti-immigrant, anti-Islam League.&nbsp

Salvini announced Friday that he would visit Sicily to see the situation for himself at one of the main landing points for refugees fleeing war, persecution and famine across North Africa and the Middle East.

"The good times for illegals is over -- get ready to pack your bags," Salvini said at a rally in Italy's north on Saturday, adding however that he wants to economically assist migrants' countries of origin.

His comments come after more than 150 migrants, including nine children, disembarked from a rescue ship late Friday in Sicily.

From today, the state is us

Conte attended a military parade alongside President Sergio Mattarella on Saturday, marking Republic Day for the foundation of the Italian Republic in 1946.

However the new prime minister has issued few public statements since being appointed.

On Saturday he did post on Facebook that he had spoken with German Chancellor Angela Merkel and French President Emmanuel Macron and would meet the two leaders at the G7 summit, where he will be a "spokesman for the interests of Italian citizens".

Conte has also opted to keep the country's intelligence services under his personal control.&nbsp

Deputy premier Di Maio, who is serving as economic development minister, also took to Facebook, calling for "entrepreneurs to be left alone".

"Employers and employees in Italy must not be enemies," he said, promising "I will not disappoint you".

On Saturday evening Five Star held a rally in the centre of Rome with thousands of supporters and all its ministers to celebrate "the government of change".

Di Maio told the crowd that "from today, the state is us".

Five Star's founder, former comic Beppe Grillo, rang a bell in front of the crowd, saying the sound "marks the fracture between a world that is going away and a new one that is arriving".

EU and the eurosceptics

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.

EU Commission chief Jean-Claude Juncker called Saturday for Conte's new government to be treated with respect, having earlier sparked controversy by telling Italians to work harder and stop blaming the EU for the country's problems.&nbsp

"We should show respect towards Italy," Juncker said in an interview with the German press group Funke Mediengruppe.

Juncker said Italy must not suffer the same fate as thrice-bailed out Greece whose dignity was "trodden under foot" by its creditors when left-wing Prime Minister Alexis Tsipras took office in 2015.

"That must not happen again in the present case with Italy," Juncker said.

"Italians have a clear understanding of what is good for their country. They will sort it out."

Italy's new prime minister Giuseppe Conte mostly kept quiet on his full first day in office Saturday, while his two powerful deputies took centre stage in setting the tone of the populist government's policy

Italy's new prime minister Giuseppe Conte mostly kept quiet on his full first day in office Saturday, while his two powerful deputies took centre stage in setting the tone of the populist government's policy. Conte, a political novice, was finally sworn in on Friday as the head of a government of ministers from the anti-establishment Five Star Movement and the far-right League, ending months of uncertainty since elections in March. But Conte was a compromise candidate between Five Star leader Luigi Di Maio and the League's Matteo Salvini -- both of whom are now his deputy prime ministers -- and he will have to walk a delicate line to push through the anti-austerity and pro-security promises their populist parties campaigned on. The 53-year-old academic also inherited a daunting list of issues from his predecessor Paolo Gentiloni, including the financial travails of companies such as Ilva and Alitalia, a Group of Seven summit in Canada and a key EU summit at the end of the month, as well as the thorny question of immigration. Immigration is the bugbear of Conte's interior minister, Salvini, the 45-year-old leader of the anti-immigrant, anti-Islam League. Salvini announced Friday that he would visit Sicily to see the situation for himself at one of the main landing points for refugees fleeing war, persecution and famine across North Africa and the Middle East. "The good times for illegals is over -- get ready to pack your bags," Salvini said at a rally in Italy's north on Saturday, adding however that he wants to economically assist migrants' countries of origin. His comments come after more than 150 migrants, including nine children, disembarked from a rescue ship late Friday in Sicily. From today, the state is us Conte attended a military parade alongside President Sergio Mattarella on Saturday, marking Republic Day for the foundation of the Italian Republic in 1946. However the new prime minister has issued few public statements since being appointed. On Saturday he did post on Facebook that he had spoken with German Chancellor Angela Merkel and French President Emmanuel Macron and would meet the two leaders at the G7 summit, where he will be a "spokesman for the interests of Italian citizens". Conte has also opted to keep the country's intelligence services under his personal control. Deputy premier Di Maio, who is serving as economic development minister, also took to Facebook, calling for "entrepreneurs to be left alone". "Employers and employees in Italy must not be enemies," he said, promising "I will not disappoint you". On Saturday evening Five Star held a rally in the centre of Rome with thousands of supporters and all its ministers to celebrate "the government of change". Di Maio told the crowd that "from today, the state is us". Five Star's founder, former comic Beppe Grillo, rang a bell in front of the crowd, saying the sound "marks the fracture between a world that is going away and a new one that is arriving". EU and the eurosceptics 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. EU Commission chief Jean-Claude Juncker called Saturday for Conte's new government to be treated with respect, having earlier sparked controversy by telling Italians to work harder and stop blaming the EU for the country's problems. "We should show respect towards Italy," Juncker said in an interview with the German press group Funke Mediengruppe. Juncker said Italy must not suffer the same fate as thrice-bailed out Greece whose dignity was "trodden under foot" by its creditors when left-wing Prime Minister Alexis Tsipras took office in 2015. "That must not happen again in the present case with Italy," Juncker said. "Italians have a clear understanding of what is good for their country. They will sort it out."

New Italy PM starts off in shadow of his powerful deputies

Italy's populist parties will be sworn into power&nbsp;on Friday&nbsp;in Rome after they reached a new coalition deal, narrowly avoiding snap elections and setting in motion an anti-austerity government in the eurozone's third largest economy.

On Thursday&nbsp;evening President Sergio Mattarella gave a mandate for the second time to Giuseppe Conte -- the populists' pick for prime minister.&nbsp;

Italy has been in the throes of political uncertainty for almost three months after inconclusive March elections, rocking financial markets and spreading unease among its euro partners.

Conte -- a little-known lawyer and political novice -- announced his picks for the country's future cabinet after meeting with Mattarella.&nbsp;

From the coalition, far-right League leader Matteo Salvini was named interior minister while Five Star Movement leader Luigi Di Maio is slated to become minister for economic development.

Paolo Savona, the eurosceptic economist who the populist coalition originally wanted for the economy minister but rejected by Mattarella, is still part of the cabinet as European Affairs minister.

The role of the economy minister was given to the less controversial Giovanni Tria, a political economist&nbsp;who advocates slashing taxes but is in favour of keeping Italy in the euro.

Brussels savvy Enzo Moavero Milanesi was appointed minister of foreign affairs.

Of 18 ministers in the cabinet, only five are women.&nbsp;

According to Italian media, the populist line-up will face a vote of confidence in both houses of parliament&nbsp;on Monday&nbsp;or&nbsp;Tuesday.

"Without promising any miracles, I can say that, after the first months of this government of change, I would like us to have a country with a little less tax and a little more security, a few more jobs and a few less illegal immigrants," said a gleeful Salvini at a rally after the announcement.

Just forty-eight hours ago Italy had looked to be on course for snap elections after coalition talks between the anti-establishment Five Star Movement and the far-right League collapsed over the weekend.

Mattarella vetoed the populist coalition's anti-euro choice for economy minister Savona, causing the two populist parties to abandon their joint bid for power.

Mattarella then asked pro-austerity economist Carlo Cottarelli to form a caretaker government.

Fresh elections seemed like the most likely outcome, however, after it became clear Cottarelli's government would not pass a vote of confidence in parliament.&nbsp;

In a surprise twist to Italy's drawn-out political saga, Five Star and the League frantically re-engaged in talks to get their coalition back on track&nbsp;Thursday, and emerged triumphant.

"All the conditions have been met for an M5S-League government," said the party leaders in a joint statement sent by the Five Star Movement.

In light of the populists' successful talks, Cottarelli announced&nbsp;Thursday&nbsp;that he was giving up his mandate to form a technocrat government.

"The formation of a political government is by far the best solution for the country because it avoids the uncertainty that would arise with new elections," said Cottarelli after meeting with Mattarella.

The programme proposed by the populists promises to revive Italy's sluggish economy by rejecting austerity and increasing spending.&nbsp;

Their ambitious economic proposals -- &nbsp;which include a universal basic income for Italy's poorest, rolling back pension reform and a two-tier flat tax -- have worried Brussels and financial markets given the country's sizeable debt. &nbsp;

Italy's 2.3 trillion euros of debt is 132 per cent of its gross domestic product (GDP), the highest ratio in Europe apart from Greece and more than double the bloc's 60-per cent ceiling.

The government programme includes plans to speed up expulsions of illegal immigrants and crack down on trafficking.

The eurosceptic coalition also promises a series of measures to reign in the EU including renegotiation of EU treaties and a review of the bloc's economic governance on issues such as the single currency.

But&nbsp;on Thursday&nbsp;EU chief Jean-Claude Juncker warned against blaming the EU for all of Italy's problems.

"I'm in deep love with Italy, Bella Italia. But I no longer accept that everything which is going wrong in South of Italy, in Mezzogiorno, is explained by the fact that the EU or the European Commission would not do enough," he said after leaving a meeting in Brussels.&nbsp;

"Italians have to take care of the poor regions of Italy. That means more work, less corruption, seriousness."&nbsp;

He urged Italy not to "play this game" of holding the EU responsible, adding "Nations first, Europe second."

Italy has been in the throes of political uncertainty for almost three months after inconclusive March elections

Italy's populist parties will be sworn into power on Friday in Rome after they reached a new coalition deal, narrowly avoiding snap elections and setting in motion an anti-austerity government in the eurozone's third largest economy. On Thursday evening President Sergio Mattarella gave a mandate for the second time to Giuseppe Conte -- the populists' pick for prime minister. Italy has been in the throes of political uncertainty for almost three months after inconclusive March elections, rocking financial markets and spreading unease among its euro partners. Conte -- a little-known lawyer and political novice -- announced his picks for the country's future cabinet after meeting with Mattarella. From the coalition, far-right League leader Matteo Salvini was named interior minister while Five Star Movement leader Luigi Di Maio is slated to become minister for economic development. Paolo Savona, the eurosceptic economist who the populist coalition originally wanted for the economy minister but rejected by Mattarella, is still part of the cabinet as European Affairs minister. The role of the economy minister was given to the less controversial Giovanni Tria, a political economist who advocates slashing taxes but is in favour of keeping Italy in the euro. Brussels savvy Enzo Moavero Milanesi was appointed minister of foreign affairs. Of 18 ministers in the cabinet, only five are women. According to Italian media, the populist line-up will face a vote of confidence in both houses of parliament on Monday or Tuesday. "Without promising any miracles, I can say that, after the first months of this government of change, I would like us to have a country with a little less tax and a little more security, a few more jobs and a few less illegal immigrants," said a gleeful Salvini at a rally after the announcement. Just forty-eight hours ago Italy had looked to be on course for snap elections after coalition talks between the anti-establishment Five Star Movement and the far-right League collapsed over the weekend. Mattarella vetoed the populist coalition's anti-euro choice for economy minister Savona, causing the two populist parties to abandon their joint bid for power. Mattarella then asked pro-austerity economist Carlo Cottarelli to form a caretaker government. Fresh elections seemed like the most likely outcome, however, after it became clear Cottarelli's government would not pass a vote of confidence in parliament. In a surprise twist to Italy's drawn-out political saga, Five Star and the League frantically re-engaged in talks to get their coalition back on track Thursday, and emerged triumphant. "All the conditions have been met for an M5S-League government," said the party leaders in a joint statement sent by the Five Star Movement. In light of the populists' successful talks, Cottarelli announced Thursday that he was giving up his mandate to form a technocrat government. "The formation of a political government is by far the best solution for the country because it avoids the uncertainty that would arise with new elections," said Cottarelli after meeting with Mattarella. The programme proposed by the populists promises to revive Italy's sluggish economy by rejecting austerity and increasing spending. Their ambitious economic proposals -- which include a universal basic income for Italy's poorest, rolling back pension reform and a two-tier flat tax -- have worried Brussels and financial markets given the country's sizeable debt. Italy's 2.3 trillion euros of debt is 132 per cent of its gross domestic product (GDP), the highest ratio in Europe apart from Greece and more than double the bloc's 60-per cent ceiling. The government programme includes plans to speed up expulsions of illegal immigrants and crack down on trafficking. The eurosceptic coalition also promises a series of measures to reign in the EU including renegotiation of EU treaties and a review of the bloc's economic governance on issues such as the single currency. But on Thursday EU chief Jean-Claude Juncker warned against blaming the EU for all of Italy's problems. "I'm in deep love with Italy, Bella Italia. But I no longer accept that everything which is going wrong in South of Italy, in Mezzogiorno, is explained by the fact that the EU or the European Commission would not do enough," he said after leaving a meeting in Brussels. "Italians have to take care of the poor regions of Italy. That means more work, less corruption, seriousness." He urged Italy not to "play this game" of holding the EU responsible, adding "Nations first, Europe second."

Italian populists reach last-ditch deal to take power

Italy could be forced to hold new elections after Giuseppe Conte gave up his bid to form a government following the collapse of talks with the president over including a eurosceptic economy minister in his cabinet.

Conte, 53, a lawyer and political novice, picked for prime minister by the anti-establishment Five Star Movement and far-right League seeking to form a coalition, had to present a list of ministers that the head of state would agreed to before his government could seek approval by parliament.

"I have given up my mandate to form the government of change," said Conte to reporters after leaving failed talks with President Sergio Mattarella.

Conte's decision to step aside leaves Italy in a political crisis nearly three months after March's inconclusive general election.

Following Conte's exit, Mattarella has summoned Carlo Cottarelli, an economist formerly with the International Monetary Fund, for talks on Monday, with a temporary technical government on the table as Italy faces the strong possibility of new elections in the autumn.

Cottarelli, 64, was director of the IMF's fiscal affairs department from 2008 to 2013 and became known as "Mr Scissors" for making cuts to public spending in Italy.

However, he will struggle to gain the approval of parliament with Five Star and the League commanding a majority in both houses.

"They've replaced a government with a majority with one that won't obtain one," said Five Star leader Luigi Di Maio to supporters at a rally near Rome.

Savona choice sinks deal

Mattarella confirmed that the nomination by Five Star and the League of Paolo Savona for economy minister saw the end of Conte's brief mandate.

In his latest book, "Like a Nightmare and a Dream", 81-year-old Savona calls the euro a "German cage" and says that Italy needs a plan to leave the single currency "if necessary".

"I accepted every proposed minister apart from the minister of the economy," Mattarella told reporters.

A former judge of Italy's constitutional court, Mattarella has refused to bow to what he saw as "diktats" from the two parties which he considered contrary to the country's interests.

He had watched for weeks as Five Star and the League set about trying to strike an alliance that would give Italy's hung parliament a majority.

The president said that he has done "everything possible" to aid the formation of a government, but that an openly eurosceptic economy minister ran against the parties' joint promise to simply "change Europe for the better from an Italian point of view".

"I asked for the (economy) ministry an authoritative person from the parliamentary majority who is consistent with the government programme... who isn't seen as a supporter of a line that could probably, or even inevitably, provoke Italy's exit from the euro," he added.

Mattarella said Conte refused to support "any other solution" and then, faced with the president's refusal to approve the choice of Savona, gave up his mandate to be prime minister.

Furious reaction

The leaders of Five Star and the League, Luigi Di Maio and Matteo Salvini, were infuriated by Mattarella's refusal to accept Savona, a respected financier and economist.

Salvini, who was Savona's biggest advocate and a fellow eurosceptic, said on Sunday that Italy wasn't a "colony", and that "we won't have Germany tell us what to do".

"Why don't we just say that in this country it's pointless that we vote, as the ratings agencies, financial lobbies decide the governments," a livid Di Maio said in a video on Facebook.

Later on Italian television he called for impeaching Mattarella.

"I hope that we can give the floor to Italians as soon as possible, but first we need to clear things up. First the impeachment of Mattarella... then to the polls," Di Maio said

Italy could be forced to hold new elections after Giuseppe Conte gave up his bid to form a government following the collapse of talks with the president over including a eurosceptic economy minister in his cabinet

Italy could be forced to hold new elections after Giuseppe Conte gave up his bid to form a government following the collapse of talks with the president over including a eurosceptic economy minister in his cabinet. Conte, 53, a lawyer and political novice, picked for prime minister by the anti-establishment Five Star Movement and far-right League seeking to form a coalition, had to present a list of ministers that the head of state would agreed to before his government could seek approval by parliament. "I have given up my mandate to form the government of change," said Conte to reporters after leaving failed talks with President Sergio Mattarella. Conte's decision to step aside leaves Italy in a political crisis nearly three months after March's inconclusive general election. Following Conte's exit, Mattarella has summoned Carlo Cottarelli, an economist formerly with the International Monetary Fund, for talks on Monday, with a temporary technical government on the table as Italy faces the strong possibility of new elections in the autumn. Cottarelli, 64, was director of the IMF's fiscal affairs department from 2008 to 2013 and became known as "Mr Scissors" for making cuts to public spending in Italy. However, he will struggle to gain the approval of parliament with Five Star and the League commanding a majority in both houses. "They've replaced a government with a majority with one that won't obtain one," said Five Star leader Luigi Di Maio to supporters at a rally near Rome. Savona choice sinks deal Mattarella confirmed that the nomination by Five Star and the League of Paolo Savona for economy minister saw the end of Conte's brief mandate. In his latest book, "Like a Nightmare and a Dream", 81-year-old Savona calls the euro a "German cage" and says that Italy needs a plan to leave the single currency "if necessary". "I accepted every proposed minister apart from the minister of the economy," Mattarella told reporters. A former judge of Italy's constitutional court, Mattarella has refused to bow to what he saw as "diktats" from the two parties which he considered contrary to the country's interests. He had watched for weeks as Five Star and the League set about trying to strike an alliance that would give Italy's hung parliament a majority. The president said that he has done "everything possible" to aid the formation of a government, but that an openly eurosceptic economy minister ran against the parties' joint promise to simply "change Europe for the better from an Italian point of view". "I asked for the (economy) ministry an authoritative person from the parliamentary majority who is consistent with the government programme... who isn't seen as a supporter of a line that could probably, or even inevitably, provoke Italy's exit from the euro," he added. Mattarella said Conte refused to support "any other solution" and then, faced with the president's refusal to approve the choice of Savona, gave up his mandate to be prime minister. Furious reaction The leaders of Five Star and the League, Luigi Di Maio and Matteo Salvini, were infuriated by Mattarella's refusal to accept Savona, a respected financier and economist. Salvini, who was Savona's biggest advocate and a fellow eurosceptic, said on Sunday that Italy wasn't a "colony", and that "we won't have Germany tell us what to do". "Why don't we just say that in this country it's pointless that we vote, as the ratings agencies, financial lobbies decide the governments," a livid Di Maio said in a video on Facebook. Later on Italian television he called for impeaching Mattarella. "I hope that we can give the floor to Italians as soon as possible, but first we need to clear things up. First the impeachment of Mattarella... then to the polls," Di Maio said

Italy plunges into political crisis after government talks collapse

Italy's president was tasked on Tuesday with deciding whether to approve little-known lawyer Giuseppe Conte as prime minister of a coalition government set up by anti-establishment and far-right groups.

Sergio Mattarella is expected to announce on Wednesday his decision whether to endorse political novice Conte, 54, nominated by the populist Five Star Movement and far-right League.

He hosted the speakers of the lower house and the Senate on Tuesday to discuss Conte's nomination.

The head of state has to agree to the parties' candidate and ministerial team before they can seek approval for the new government in parliament.

Mattarella's endorsement would take the two parties a step closer to setting up a eurosceptic, anti-austerity government in the eurozone's third-biggest economy.

It would seal an end to more than two months of political deadlock followed March's inconclusive general election.

Five Star leader Luigi Di Maio and League chief Matteo Salvini unveiled their policy programme on Friday.

As well as planning to speed up expulsions of illegal immigrants, the programme contains anti-austerity measures including drastic tax cuts, pension reform rollbacks and a monthly basic income.

EU warning&nbsp

European authorities Tuesday warned Di Maio and Salvini to be "responsible" in their budget measures.

Italy's 2.3 trillion euros of debt is 132 percent of its gross domestic product (GDP), the highest ratio in Europe apart from Greece and more than double the bloc's 60-percent ceiling.

"We view it as important that the Italian government remains on course in pursuing a responsible budget policy," German business daily Handelsblatt quoted Valdis Dombrovskis, the body's vice-president for the euro, as saying.

Italy has one of the eurozone's lowest growth rates, with 8.3 percent of the population living in absolute poverty, according to national statistics agency Istat.

Istat announced Tuesday a GDP growth forecast of 1.4 percent in 2018, down 0.1 percent on an April forecast.

CV controversy

Conte's CV boasts studies at New York University (NYU), the Sorbonne and Cambridge, but some entries have been called into question.

NYU told Monday's New York Times they had no record of him studying there to "further his juridical studies" as Conte's CV claims. The university said he might have taken part in one or two-day courses for which they don't keep records.

Cambridge University said it does not "disclose personal data without the knowledge and/or consent of the subject of that personal data".

Conte has yet to speak publicly, but Five Star has defended its PM pick to head a cabinet in which Di Maio and Salvini are tipped to hold key posts.

"The international and Italian press are going wild over presumed qualifications that Conte has never claimed to have. This is the umpteenth confirmation that they really are afraid of this government of change," Five Star said in a statement.

Authority

Some observers questioned whether Conte had the necessary authority for the job.

"He's in a very difficult situation because he has to deal with two groups who have formed a difficult compromise," Franco Pavoncello, a political scientist and president of Rome's John Cabot University, told AFP.

"What remains to be seen is whether he's going to be able to control the various political directions in which this coalition was formed."

Some media and commentators said Conte would be at the command of the two coalition groups' leaders.

"I think that he'll have to respond to what they want, do what they decide," Gianfranco Pasquino, political science professor at the John Hopkins School of Advanced International Studies in Bologna, told AFP.

"It doesn't seem that he has political experience so he will be forced to carry out the preferences of Di Maio and Salvini."

Italy's president was tasked on Tuesday with deciding whether to approve little-known lawyer Giuseppe Conte as prime minister of a coalition government set up by anti-establishment and far-right groups

Italy's president was tasked on Tuesday with deciding whether to approve little-known lawyer Giuseppe Conte as prime minister of a coalition government set up by anti-establishment and far-right groups. Sergio Mattarella is expected to announce on Wednesday his decision whether to endorse political novice Conte, 54, nominated by the populist Five Star Movement and far-right League. He hosted the speakers of the lower house and the Senate on Tuesday to discuss Conte's nomination. The head of state has to agree to the parties' candidate and ministerial team before they can seek approval for the new government in parliament. Mattarella's endorsement would take the two parties a step closer to setting up a eurosceptic, anti-austerity government in the eurozone's third-biggest economy. It would seal an end to more than two months of political deadlock followed March's inconclusive general election. Five Star leader Luigi Di Maio and League chief Matteo Salvini unveiled their policy programme on Friday. As well as planning to speed up expulsions of illegal immigrants, the programme contains anti-austerity measures including drastic tax cuts, pension reform rollbacks and a monthly basic income. EU warning European authorities Tuesday warned Di Maio and Salvini to be "responsible" in their budget measures. Italy's 2.3 trillion euros of debt is 132 percent of its gross domestic product (GDP), the highest ratio in Europe apart from Greece and more than double the bloc's 60-percent ceiling. "We view it as important that the Italian government remains on course in pursuing a responsible budget policy," German business daily Handelsblatt quoted Valdis Dombrovskis, the body's vice-president for the euro, as saying. Italy has one of the eurozone's lowest growth rates, with 8.3 percent of the population living in absolute poverty, according to national statistics agency Istat. Istat announced Tuesday a GDP growth forecast of 1.4 percent in 2018, down 0.1 percent on an April forecast. CV controversy Conte's CV boasts studies at New York University (NYU), the Sorbonne and Cambridge, but some entries have been called into question. NYU told Monday's New York Times they had no record of him studying there to "further his juridical studies" as Conte's CV claims. The university said he might have taken part in one or two-day courses for which they don't keep records. Cambridge University said it does not "disclose personal data without the knowledge and/or consent of the subject of that personal data". Conte has yet to speak publicly, but Five Star has defended its PM pick to head a cabinet in which Di Maio and Salvini are tipped to hold key posts. "The international and Italian press are going wild over presumed qualifications that Conte has never claimed to have. This is the umpteenth confirmation that they really are afraid of this government of change," Five Star said in a statement. Authority Some observers questioned whether Conte had the necessary authority for the job. "He's in a very difficult situation because he has to deal with two groups who have formed a difficult compromise," Franco Pavoncello, a political scientist and president of Rome's John Cabot University, told AFP. "What remains to be seen is whether he's going to be able to control the various political directions in which this coalition was formed." Some media and commentators said Conte would be at the command of the two coalition groups' leaders. "I think that he'll have to respond to what they want, do what they decide," Gianfranco Pasquino, political science professor at the John Hopkins School of Advanced International Studies in Bologna, told AFP. "It doesn't seem that he has political experience so he will be forced to carry out the preferences of Di Maio and Salvini."

Italy to decide on new PM for eurosceptic government

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