ITALY LIVE: Watch out Brussels - Crisis ENDS as Eurosceptic DREAM TEAM sworn in
ITALY populist forces and President Sergio Mattarella have made a breakthrough which looks like creating the European Union’s biggest nightmare: a eurosceptic government in the eurozone’s third-biggest economy.
Matteo Salvini: Italy will form new Government before Germany
The longest-ever political crisis in the history of the Italian Republic looks over after a long day of talks between all political forces.
Lega’s Matteo Salvini and Five Star Movement’s Luigi Di Maio found an agreement and assigned the eighteen ministerial posts available after a four-hour long meeting.
The eurosceptic pair will both be deputy prime ministers of a government led by law professor Giuseppe Conte, who returned to Rome after his resignation last week.
And europhile President Mattarella gave his blessing to all the decisions taken by Mr Salvini and Mr Di Maio, as the man he regarded as the main problem to the formation of the new executive, anti-euro economist Paolo Savona, has been moved from the Economy Ministry to the European Affairs one.
A difficult journey just ended, I wish the best to everyone
The role of economy minister will go to finance professor Giovanni Tria.
Following a meeting with Mr Conte at 10pm (9pm GMT) on Thursday, President Mattarella said: “A difficult journey just ended, I wish the best to everyone.”
And Mr Conte said: “We will work hard to achieve the objectives of the contract, we will work with determination to improve the quality of life of all Italians.”
Today at 4pm local time (3pm GMT) the prime minister will be sworn in at the Quirinale, President Mattarella’s residency, marking the beginning of Italy’s 18th government.
Follow Express.co.uk below for live updates from Italy.
7.55pm update
Lega and M5S MEPs backed a proposal to set up EU funds to help countries quit the euro - the proposal was rejected.
The vote on Wednesday came as M5S and Lega were finalising a deal to form an executive in Rome.
M5S released a statement today saying their vote was meant to show support for countries that may find themselves in extreme economic situations.
“To affirm the principle of collaboration with countries in difficulty does not mean at all to be willing to leave the euro," the note said.
"Italy does not want to quit the euro,” it added.
5.50pm update
Jean-Claude Juncker spokeswoman tweeted: "The European Commission will be at Italy's side on its reform path and remain attentive to Italy's expectations of and proposals for the future of the EU."
4.40pm update
President of the European Council Donald Tusk wrote a letter to Italy's new Prime Minsiter Giuseppe Conte stressing that it is a critical time for Italy and the EU.
In the letter he said: "Your appointment comes at a crucial time for Italy and the entire European Union.
"To overcome our common challenges, we need unity and solidarity more than ever."
3.30pm update
All ministers have sworn in, officially ending the political crisis that seemed to be on its way to cripple Italy and officially starting the 18th legislature of the Italian Republic.
3.10pm update
Mr Salvini and Mr Di Maio have sworn to "respect the Constitution and exercise his power in the interest of their country" and signed their oath in front of President Sergio Mattarella.
3.08pm update
Giuseppe Conte swears in, becoming the new Prime Minister of Italy and ending the political deadlock that lasted for more than 80 days.
3.00pm update
Prime Minister Giuseppe Conte, Mr Salvini, Mr Di Maio and the ministers chosen by the two populist leaders are arriving to the Quirinale palace to swear in.
2.55pm update
President Sergio Mattarella sent a message to all Italian prefects ahead of tomorrow national holiday celebrating the Republic.
He wrote: "Every attempt of making our Italy and our Europe fall back must be stopped with strength, using the great resources of generosity of our citizens.
"Tensions and struggles find solutions and expression in a unified country."
2pm update
Angela Merkel acknowledged the formation of the new populist government and said to "be open to meet" its leaders.
Stefan Seibert, Ms Merkel's spokesman, said: "We are waiting for the government to be formed and we will be open to meet it.
"We will do everything possible to have a good cooperation between us."
Italian MEP calls for Germany to change relationship with Italy
1.00pm update
The European Commission said it was confident that Italy's new anti-establishment government would cooperate "constructively" with its EU partners.
A spokeswoman for the EU executive told a regular news briefing in Brussels: "We have full confidence in the capacity and willingness of the new government to engage constructively with its European partners and EU institutions to uphold Italy's central role in the common European project."
The spokeswoman also dismissed as "misleading" media reports suggesting that Commission President Jean-Claude Juncker had shown a lack of respect towards Italians at a conference on Thursday.
11.40am update
Centre-left wing PD have taken to the streets holding copies of the Constitution to protest against the newly-formed government.
Party leader Maurizio Martina said: "This government has a dangerous programme for the country.
"We are starting to work now from the opposition benches to build a real and strong popular alternative."
10.50am update
Top Italian political commentator and editor in chief of Italian newspaper Repubblica blasted the choice of Mr Conte as a PM.
He said: "The storm that lasted for almost a week was useless.
"We now have the same prime minister of last Monday, a weak prime minister.
"We will have two strong men in power, Di Maio and Salvini, and a weak prime minister who won't be free to take decisions."
10.15am update
Mr Salvini, set to be the future Home minister and deputy prime minister of Italy, has vowed to cut immigration.
He said: "Open doors in Italy for good people and a one-way ticket out of the country to those who come to Italy thinking they will receive an almony for life.
"I confronted with the new PM and asked him to take care of the five billion euro that this year as well as in the past have been given to support asylum-seekers: I would like to cut that expense, it seems a bit to high to me."
10.00am update
Newly-appointed prime minister Conte is in a meeting with Roberto Fico, the president of the low chamber.
Speaking to reporters while getting in a taxi on his way to Montecitorio, he said: "Excited? Well yes, I am a bit excited."
9.55am update
These are the names of the future Italian ministers.
Matteo Salvini (Lega), deputy PM and Home minister;
Luigi Di Maio (M5S), deputy PM and Labour and Economic development minister;
Paolo Savona (economist and professor), European Affairs minister;
Giovanni Tria (economist and professor), Economy minister;
Erika Stefani (Lega), Regional and Autonomies Affairs minister;
Barbara Lezzi (M5S), South Minister;
Lorenzo Fontana (Lega) Disabilities Minister;
Enzo Moavero Milanesi (independent group and former Deputy Secretary-General of the European Commission), Foreign Affairs minister;
Elisabetta Trenta (government advisor), Defence minister;
Alfonso Bonafide (M5S), Justice minister;
Giulia Grillo (M5S), Health minister;
Riccardo Fraccaro (M5S), Relations with the Parliament minister;
Sergio Costa (M5S), Environmnet minister;
Gian Marco Centinaio (Lega) Agricultural Politics minister;
Danilo Toninelli (M5S) Infrastructure minister;
Marco Bussetti (M5S) Education minister;
Alberto Bonisoli (M5S) Cultural Heritage minister;
Giancarlo Giorgetti (Lega) Undersecretary to the PM.
9.45am update
Mr Di Maio took to Facebook to express his satisfaction over the agreement reached yesterday.
Uploading a picture showing Five Star Movement's founders comedian Beppe Grillo and late entrepreneur Gianroberto Casaleggio shaking hands, he added: "Dreams come true."
9.35am update
Mr Salvini reacted on Facebook to a scathing attack from centre-left Democratic Party (PD)'s head of MPs, Graziano Delrio, who called his party "neofascist".
The Lega leader used a quote commonly attributed to Mark Twain to Oscar Wilde to reply.
He wrote: "It's better to keep your mouth shut and appear stupid than open it and remove all doubt."
Mr Delrio accused Mr Salvini of "playing cat and mouse" with Mr Di Maio.
He said: "Salvini's plan is clear, he wants to carry Italy outside of Europe and the euro, he is playing cat and mouse with Di Maio, who said he doesn't want these things to happen.
"If he doesn't, then he can't form an alliance with Lega.
"Salvini's party is neofascist, he works and has dinner with European neofascists."
09:15am update
The possible end of the crisis in Italy after almost three months of political deadlock has calmed down the markets after a week of tumultuousness.
Italian two-year yields, which soared to five-year highs above 2.7 per cent on Tuesday in a throwback to the euro debt crisis, retreated back to Monday's levels.
But the anti-euro agenda and the spending plan announced by the two populist leaders may upset the markets soon once again, according to Antoine Bouvet, rates strategist at Mizuho International.
He said: "We think the relief rally in Italian BTPs (bonds), stemming from the reduction in uncertainty in the near term, should prove short-lived.
"The fiscally profligate agenda remains."
09:00am update
China is "happy to see Italy maintain political and social stability", said Hua Chunying, the spokeswoman for Chinese foreign ministry, at a regular briefing with the press in Beijing.