Two Italian populist parties have succeeded after weeks of negotiations in forming a government, to be headed by a political novice whose first attempt was rejected just days go.

The anti-establishment 5-Star Movement and the right-wing League have proposed law professor Giuseppe Conte to be the new prime minister.

The deal ends almost three months of political deadlock after an inconclusive election on 4 March where no party or bloc won a majority.

It also removes the risk of a repeat vote, a prospect that had sparked a big selloff in Italian financial markets this week.

The new premier is to be sworn in today, after receiving the mandate to form a government by Italian President Sergio Mattarella.


The government then faces votes of confidence in both houses of parliament next week.

:: Who is Giuseppe Conte?

Image: Giuseppe Conte has not been elected and has never held public office

"We will work with determination to improve the quality of life of all Italians," said Mr Conte, after reading his proposed cabinet list.

The breakthrough came after several hours of talks between 5-Star chief Luigi Di Maio and League leader Matteo Salvini.

Their previous attempt to form a government headed by Mr Conte failed because the president vetoed Mr Conte's choice for economy minister - a eurosceptic who had previously said Italy should have a contingency plan to abandon the euro.

That led Mr Conte to quit as PM designate, and the president to tap a highly respected former International Monetary Fund official, Carlo Cottarelli, to form a stop-gap government.

Image: Luigi Di Maio (l) and Matteo Salvini (r) are in the cabinet

But Mr Cottarelli was put on hold and eventually stepped aside as the 5-Stars and the League revived their plans for a government and indicated willingness to compromise on their ministers.

In the new lin-up of ministers approved by the president, the eurosceptic originally proposed for the economy minister, Paolo Savona, has been moved to a European affairs cabinet post.

The new economics minister, Giovanni Tria, is a mainstream economist at Rome University.

The foreign ministry goes to Enzo Moavero Milanesi, a former European Union official in Brussels who was European affairs minister in former premier Mario Monti's government.

Here are some of the key ministers:

:: Prime Minister - Giuseppe Conte

:: Economy - Giuseppe Tria

:: Home affairs - Matteo Salvini

:: Employment - Luigi Di Maio

:: Foreign Affairs - Enzo Moavero Milanesi

:: European Affairs - Paolo Savona