What has happened?

Italy has been without a government since an election on 4 March resulted in a hung parliament. A fresh political crisis has arisen following the surprise resignation of Giuseppe Conte, a little-known law professor who had been selected by the party that won the largest share of the vote – the Five Star Movement (M5S) – and the far-right Lega, to form what would have been Western Europe’s first populist government.

Conte resigned on Sunday night after the parties’ favoured candidate to serve as finance minister, the anti-Euro Paolo Savona, was rejected by the pro-EU Italian president, Sergio Mattarella.

Could the parties have chosen a different finance minister?

Yes. Savona had been seen as very controversial because of his anti-Euro and anti-German views. But the populist parties, and particularly Matteo Salvini, the Lega’s leader, insisted on his candidacy. One analyst said it was an attempt to strongarm Mattarella and to send a populist message in defiance of the presidential palace. Mattarella pushed back against this.

What are the president’s powers?

As president and head of state, Mattarella has limited powers, but the constitution affords him certain rights. He can formally appoint a head of government and ministers. The president may also dissolve parliament. Italian heads of state have made bold moves in the past. Mattarella’s predecessor Giorgio Napolitano supported the ousting of Silvio Berlusconi as prime minister in 2011.

Did Mattarella overreach?

Critics, including Luigi Di Maio, the M5S leader, were quick to accuse Mattarella of an abuse of power and have called for his impeachment. However, previous presidents have also vetoed the appointment of individual ministers. What made the latest development stand out is that the populist leaders insisted on Savona after Mattarella had already objected to his candidacy.

Can the president be impeached?

He could be, but it is seen as extremely unlikely. Italy’s constitutional court would first have to accept that the issue could be taken up by parliament. Then, the combined parliament of about 950 members would have to vote by an absolute majority to impeach him.

What happens next?

Mattarella has asked Carlo Cottarelli, a technocrat and former International Monetary Fund economist, to form a government, after talks on Monday at the presidential palace in Rome. However, Cottarelli is likely to lose a vote of confidence because he does not have the support of either M5S or the League.

If Cottarelli survived such a vote, he would set about forming an interim government made up of technocrats, before elections early next year. But with the populist parties expected to reject his candidacy, a snap election looks more likely, and could possibly be called as early as September. The poll is shaping up to be an unofficial referendum on the issue at the heart of the Savona row: whether or not Italy has a future in the eurozone.