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Former Italian premier Silvio Berlusconi said he will not block a possible coalition deal after populist party Five Star Movement and the right-wing Lega called for another day to try and form an anti-EU government.

A statement from the presidential palace said: “The Five Star Movement and Lega have informed the president that they are in talks to try to come to a possible government accord and that they need 24 hours to develop this initiative.”

Mr Berlusconi said: “We will not oppose. We will evaluate this without prejudice. And it is not the end of the alliance.”

Five Star leader Luigi Di Maio, whose party became the centrepiece of Italian politics after gaining 33 percent of the vote in March, reacted to the news saying: “I’m glad that responsibility has prevailed. It's an important moment.