Italy's populist govt sworn in

An anti-establishment government took power in Italy yesterday after a last-ditch coalition deal was hammered out to end months of political turmoil, narrowly avoiding snap elections in the eurozone's third largest economy.

New Prime Minister Giuseppe Conte and his cabinet -- the first populist government in an EU founding member -- were sworn in by President Sergio Mattarella at the presidential palace.

The ceremony brought long sought-after stability to the country following months of political drama which had worried financial markets and Italy's EU partners.

Just days ago fresh elections had seemed inevitable but on Thursday, President Sergio Mattarella named political novice Conte as prime minister for the second time in less than a fortnight and approved his revised government forged by the nationalist League and anti-establishment Five Star Movement.

"The new right is in power," said left-leaning daily La Repubblica.

European powerhouse Germany vowed an "open" stance towards the new government, but European Commission chief Jean-Claude Juncker told Italians they needed to "do more work, less corruption" and stop blaming the EU for their woes.

The new coalition plans to reject austerity and increasing spending and also wants to renegotiate EU treaties and review the bloc's economic governance.

Its ambitious economic proposals -- which include a monthly basic income for Italy's poorest and a two tier "flat" tax -- have worried Brussels and financial markets given Italy's massive 2.3 trillion euro ($2.7 trillion) debt.