M5S halts coalition talks, demands Conte stay as PM
The Five Star Party (M5S) and the Democratic Party (PD) have reached an impasse in their talks to craft a new coalition government over whether to choose Giuseppe Conte as Prime Minister once again.
The PD wanted a fresh face to lead the new coalition following Conte's resignation just one week before, but according to ANSA, PD chief, Nicola Zingaretti, had acquiesced to keep Conte on.
Indeed, Conte reportedly participated in talks between Di Maio and Zingaretti at the Chigi palace in Rome, on Monday, that went far into the night.
However, the PD's directorate had yet to approve the decision to lift its veto against Conte and a meeting scheduled for 1700 BST on Tuesday was postponed to 0900 BST on Wednesday.
If the two parties failed to agree a new coalition by mid-week, then Italian president Sergio Mattarella would have no choice but to dissolve parliament and call new general elections.
Mattarella was scheduled to meet with Di Maio and Zingaretti on Wednesday evening to evaluate whether enough progress had been made between them.
The M5S and the PD were eager to form a government and thus avoid elections, as well as blocking League leader Salvini's attempts at a power grab after he forced the dissolution of the previous government coalition by tabling a no-confidence vote against Conte earlier in the same month.
Realising his error, Salvini had already made repeated attempts at a reconciliation with Five Star.
Italian stock markets were hopeful on Tuesday that a general election would be avoided and that the M5S and PD would reach an understanding despite the multiple differences between their political programmes.