German Chancellor Angela Merkel held talks with Italy's new populist prime minister, Giuseppe Conte, on Saturday and invited him to Berlin for further discussions on the two countries' future relationship.



The chancellor's office said in a statement that Merkel had congratulated Conte on becoming prime minister. During the phone conversation, the two leaders emphasized the importance of "continued close bilateral cooperation," the statement added.

Read more: Who is Italy's prime minister, Giuseppe Conte?

Conte, a little-known Italian law professor, has mostly kept quiet since being sworn in on Friday, but he announced on Facebook that, along with Merkel, he had also held talks with France's Emmanuel Macron on Saturday. He said he would meet the two leaders at next week's G7 summit in Canada, where he will be a "spokesman for the interests of Italian citizens."

Merkel has remained among the calmer voices when it comes to assessing Italy's new governing coalition, made up of the anti-establishment 5-Star Movement (M5S) and the far-right League.

Both parties campaigned on a policy platform that was characteristically hostile toward the European Union and the euro. Now that the parties are in power, it remains to be seen how far M5S and the League intend take the fight to Brussels and Frankfurt.

Read more: Opinion: The problem is populism, not just Italy

The chancellor's composure has not necessarily been reflected elsewhere in Germany. The latest edition of German weekly Der Spiegel, published on Friday, featured on its cover a forkful of spaghetti with a dangling strand tied together as noose. "Italy is destroying itself — and dragging down Europe with it," the headline read.

Merkel on Italian calls for debt relief

Shortly after speaking to Conte, reports emerged of Merkel appearing to rule out any possibility of Italian debt relief.

In an interview with Germany's Frankfurter Allgemeine Sonntagszeitung, due to be published on Sunday, Merkel said solidarity among eurozone members should not turn the single currency bloc into a "debt union."

Read more: Italy and the eurozone: The cloud returns

The German chancellor was responding to reports that the Italian government plans to ask the European Central Bank (ECB) to forgive some €250 billion ($292 billion) in debt. The ECB issued a statement saying the European treaties would not allow for such a move in the first place.

When asked how she intends to deal with the new populist government in Rome, Merkel said she would "approach the new Italian government openly and work with it instead of speculating about its intentions."

Italy's populist government: Key players Conte: Novice at the helm Giuseppe Conte, a little-known law professor with no political experience, was picked by the League and 5-Star Movement (M5S) as their candidate for prime minister. He was forced to temporarily give up his leadership bid after the parties' cabinet selection was initially blocked. However, after the two parties struck a deal with President Sergio Mattarella, Conte was eventually sworn in on June 1.

Italy's populist government: Key players Mattarella: President with the final say President Sergio Mattarella faced calls for his impeachment after he prevented the populist alliance from taking office. He singled out its choice for finance minister, Paolo Savona, warning that an openly euroskeptic minister in that position went against the parties' joint promise to simply "change Europe for the better." After the parties agreed to replace Savona, Mattarella gave the go-ahead.

Italy's populist government: Key players Di Maio: Anti-austerity advocate M5S chief Luigi Di Maio secured his party 32 percent of the vote in the March election. With the populist M5S-League coalition in power, Di Maio assumed the role of joint deputy prime minister and took over the economic development portfolio. The M5S leader has come under fire for his anti-immigration rhetoric, including calling rescue missions to save migrants from drowning a "sea-taxi service."

Italy's populist government: Key players Salvini: 'The Captain' Matteo Salvini is the leader of the anti-immigrant, euroskeptic League, which won 17 percent of the vote in the March election. A former MEP, he and his party have no experience in governing. Salvini has taken on the position of interior minister within Conte's Cabinet. Known for his hostile rhetoric toward immigrants and the EU, Salvini once described the euro a "crime against humanity."

Italy's populist government: Key players Savona: Anti-euro radical Paola Savona, initially tipped to lead the Finance Ministry, has called the euro a "German cage" and said that Italy needs a plan to leave the single currency. The 81-year-old's stance won him the backing of most Italian lawmakers but that wasn't enough to stop his appointment being vetoed. In his place steps Giovanni Tria, an economics professor without any previous government experience.

Italy's populist government: Key players Cottarelli: Temporary caretaker Carlo Cottarelli was set to become Italy's caretaker prime minster after the M5S-League alliance failed to have its controversial cabinet picks approved. The former IMF economist's time in the spotlight was short-lived, however. Political uncertainty in Italy rocked Europe's financial markets and prompted Mattarella to swiftly renegotiate and approve Salvini and Di Maio's governing coalition.

Italy's populist government: Key players Berlusconi: Vanquished enabler Silvio Berlusconi (right) and his Forza Italia entered a four-party electoral alliance including League in the March election that secured the bloc 37 percent. Berlusconi is now upset at his right-wing ally Salvini after the League leader moved to work with M5S. Berlusconi has said he would act as a "reasonable and scrutinizing opposition." Author: Chase Winter



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