The Italian prime minister has handed his resignation letter to the country's president after his populist government lost the support of a key coalition member - Matteo Salvini's League.

In a speech announcing he would resign, Prime Minister Giuseppe Conte launched a fierce attack on Mr Salvini, who served as deputy PM as well as interior minister, accusing him of trying to ruin the ruling coalition for personal and political gain.

Earlier this month, Mr Salvini pulled the plug on his party's alliance with the anti-establishment 5-Star Movement, after months of bickering over key policies.

Mr Conte told a packed Senate that Mr Salvini "has shown that he is following his own interests and those of his party.

"His decisions pose serious risks for this country."


He described Mr Salvini's actions as "serious institutional recklessness, above all showing disrespect to parliament and liable to tip the country into a spiral of political uncertainty and financial instability".

Image: Matteo Salvini wants to exploit the League's popularity by forcing an early election

Italy's president, Sergio Mattarella, has accepted Mr Conte's resignation but asked him to stay in post while consultations are held with party leaders to seek a solution to the political crisis.

Mr Mattarella is hoping to find political will to form a new government. If this does not happen, he could dissolve parliament and hold a new election as early as October.

Image: Matteo Salvini was congratulated by members of his League party after his speech

Mr Salvini was sitting next to Mr Conte while he made his speech, and shook his head and rolled his eyes as his actions were criticised.

With his right-wing party experiencing growing popularity, Mr Salvini wants to force an election more than three years ahead of schedule.

Responding to Mr Conte's accusations, Mr Salvini said his goal was to challenge the European Union's fiscal rules, which he has blamed for making Italy poorer.

He also said he was not afraid of an early election, adding that he would "do again everything I did... I'm a free man and I don't fear Italians' judgement".

Image: Mr Conte with Italian Deputy Prime Minister and Labour Minister Luigi di Maio (R)

Earlier in the day, Luigi Di Maio, head of the 5-Star Movement, had hinted at what might be coming, with a Facebook post thanking the prime minister.

He wrote: "Whatever happens, I wanted to tell you that it was an honour to work together in this government."

The Italian stock market index fell by more than 1% on the news as investors moved towards safe-haven assets such as government bonds.