Italy's center-left Democratic Party and populist Five Star Movement said Wednesday they have agreed to form a coalition government, staving off new elections that appeared likely after the resignation of Prime Minister Giuseppe Conte earlier this month, the BBC reports.

Why it matters: Matteo Salvini, the leader of the far-right League party and perhaps the most popular politician in Italy, withdrew his support on Aug. 8 from the unlikely coalition he had formed with Five Star after the 2018 election. Salvini hoped fresh elections might allow him to become prime minister. Instead, his gamble has expelled his party out of power. Conte has agreed to stay on as prime minister of the new coalition, per BBC.

Go deeper: Italy's history of political instability