The first appointed from Italy initiates a search for government support

Italy's appointed prime minister, Giuseppe Conte, a law professor with no political experience, began his search for a government that would satisfy his populist sponsors and approve the agreement with President Sergio Mattarella.

Conte, 53, will meet with leaders of all political parties in the lower house in Rome on Thursday, starting at 8 a.m. m., informed the news agency Ansa. After talks with the head of state, Conte received a mandate on Wednesday to form a new administration, which has already scared financial markets.

Photographer: Alessia Pierdomenico / Bloomberg

Mattarella, 76, a former constitutional court judge, told Conte about his concern for the economy, according to a senior state official who declined to be mentioned when discussing a confidential meeting. . Mattarella highlighted Italy's economic difficulties, as well as the need to safeguard financial stability, market confidence and budget rules, said the official. Conte badured Mattarella of his full cooperation, the official said.

Photographer: Alessia Pierdomenico / Bloomberg

"I am aware of the need to confirm Italy's position in Europe," Conte said after meeting with Mattarella, accepting his mandate. He added that his government will be based on a program prepared by Luigi Di Maio of the Five Star Movement against the establishment and Matteo Salvini of the anti-immigrant League.

Paolo Savona, an 81-year-old economist who repeatedly asked the government to plan a possible exit from the euro, is the frontrunner for the post of finance minister, according to league officials. Another possible contender for the position is Luigi Zingales, a finance professor at the Booth School of Business at the University of Chicago, newspaper La Stampa reported.

Conte said the government would have to deal "directly with the ongoing negotiations" on the European Union Budget, reform of the asylum application process and finalization of the banking union. He said his intention was "to build the relevant alliances and work for the process to reflect the national interest."

In Italy, a novice can face a rival puppet

A Eurosceptic government, led by Conte. it has enervated markets even before its birth, with the Five Star-League policy program promising excessive spending and tax cuts in deliberate defiance of EU fiscal rules.

Italy's economy is an obstacle to such an administration, with slower growth in the euro area this year. Conte's lack of political experience and his unproven ability to contain the personal and political rivalry between Di Maio and Salvini are also cause for concern.

Bonds Slide

Italian bonds resumed their decline on Wednesday, with the 10-year yield divided by German Bunds that are extended to 189 basis points, the largest amount since June.

The designated prime minister will draw up a list of ministers that he must present to the head of state. If Mattarella approves the team, the government will take an oath and then face a vote of confidence in both houses of parliament, possibly next week.

Di Maio is emerging as a possible minister of labor and economic development, while Salvini could be Interior Minister.

– With the badistance of Chiara Albanese, and Kevin Costelloe

( Updates the 5th paragraph with the Zingales report. )


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