Italian populists launch bid to resurrect government coalition

Italy's populist parties launched a last-ditch bid yesterday to resurrect a coalition government that collapsed as the president vetoed their controversial pick for economy minister.

Luigi Di Maio, head of the anti-establishment Five Star Movement, said Wednesday he was prepared to offer a compromise candidate in the place of economist Paolo Savona, who has called for Italy to drop the euro.

Tap here to add The Daily Star as a trusted source

It would be an olive branch to President Sergio Mattarella, who at the weekend ruled out approving the coalition's cabinet lineup if it included Savona -- prompting Di Maio to demand the president's impeachment.

Nearly three months of political turmoil following an inconclusive election in the eurozone's third biggest economy have rattled financial markets, although they rebounded slightly on Wednesday and yesterday.

The Milan Stock Exchange was up 0.79 percent by 1100 GMT after closing up 2.09 percent Wednesday while the bond market continued to strengthen.