ROME--Efforts to form a coalition government collapsed on Sunday after the Italian president rejected a eurosceptic pick for the key economy ministry, triggering a possible constitutional crisis and opening the prospect of fresh elections.
The leaders of the two parties trying to field a government, the far-right League and anti-establishment 5-Star Movement, accused President Sergio Mattarella of abusing his authority and working under the orders of European powers.
5-Star leader Luigi Di Maio, whose party won the most seats at an inconclusive March 4 vote, demanded that parliament impeach Mattarella, raising the spectre of political turmoil in the euro zone's third biggest economy. Financial markets tumbled last week on fears the mooted coalition would unleash a spending splurge and increase Italy's already huge debt mountain, which is equivalent to more than 1.3 times the nation's domestic output.
Looking to allay investor concerns, Mattarella vetoed on Sunday the choice of 81-year-old economist Paolo Savona, a vocal critic of the single currency, to the pivotal economy post. Prime Minister-designate Giuseppe Conte promptly abandoned his efforts to form a government.
In a sombre, televised speech, Mattarella said he had accepted all the suggested ministers bar Savona. "I asked for that ministry an authoritative political figure from the coalition parties who was not seen as the supporter of a line that could provoke Italy's exit from the euro," he said.
Shortly afterwards, he summoned former International Monetary Fund (IMF) senior official Carlo Cottarelli for a Monday morning meeting -- an indication he may be considering asking him to head a government of unelected technocrats. Cottarelli would be a calming choice for the financial markets, but any technocrat administration would likely only be a short-term solution because the majority of parliamentarians have said they would not support such a government.
If he failed to win parliamentary backing, Cottarelli would stay in office in a caretaker capacity ahead of elections that would most likely be held in September or October. Polls have suggested that the League, which won 17 percent of the vote in March, would see its support surge in any early ballot, while support for 5-Star remained strong. Mainstream centre-left and centre-right parties were seen losing further ground in the face of voter anger over the sluggish economy.
League leader Matteo Salvini responded furiously to Mattarella's refusal to rubberstamp Savona. "If there's not the OK of Berlin, Paris or Brussels, in Italy a government cannot be formed. It's a folly, and I ask the Italian people to stay close to us because I want to bring democracy back to this country," Salvini told reporters.
News of Mattarella's veto sent a shockwave through Italy. The leader of the nationalist Brothers of Italy party, which had an electoral pact with the League, said the head of state should be impeached, accusing him of abusing his position.
"We will ask parliament to charge Mattarella with high-treason because he has acted under foreign pressure," Brothers of Italy chief Giorgia Meloni said on La7 television channel.
The 5-Star's Di Maio also demanded impeachment under article 90 of the constitution. Under that clause, parliament can demand a president leave office if a simple majority of lawmakers votes in favour. The constitutional court would then be called to decide whether to impeach or not.
"After tonight, it's truly difficult to believe in the institutions and the laws of the state," Di Maio said.
