Italy’s president Sergio Mattarella on Thursday offered outgoing prime minister Giuseppe Conte a fresh mandate to try to form a new coalition of the anti-establishment Five Star Movement and centre-left Democratic party (PD).
A deal between two parties that were once fierce rivals would stave off fresh elections and shut Matteo Salvini’s far-right League party out of government.
Mr Conte “conditionally” accepted, saying he would lead a government that would be “concentrated on the needs of citizens and make us proud to be Italian”. The two parties have compiled a list of shared priorities, seen by the Financial Times, which they have asked Mr Conte to use as the basis for a programme of legislation.
Mr Conte led an unwieldy coalition between Five Star and the League that was formed after a general election last year. It survived until Mr Salvini this month withdrew support for the government and called for fresh
elections, sparking Mr Conte’s resignation.
But Mr Salvini’s attempt to call a vote, a calculated move as his party was ahead in the polls, seems to have backfired. Five Star and PD entered negotiations, and after days of tense talks said on Wednesday that they would try to form a coalition under Mr Conte, who was a political unknown until last year but now has high approval ratings, leading Five Star to insist he remain as prime minister.
Mr Conte said he had some doubts about returning to government with “a different majority” but said he “had always worked in the interests of the people”.
“I didn’t always succeed but I tried to serve the interests of my country, not political parties or myself,” Mr Conte said.
He said Italy needed to “emerge quickly from the uncertainty created by the political crisis”.
Italy needs to find at least €23bn in savings to avoid a rise in VAT and possible EU censure. On Thursday Mr Conte pledged to prevent any rise in VAT, “while promoting growth and social development”.



