Eyes on Italy's president after he vetoes populists' choice

Eyes on Italy's president after he vetoes populists' choice
Italian President Sergio Mattarella addresses the media after meeting Italy's premier-designate Giuseppe Conte in Rome, Sunday, May 27, 2018. Italian President Sergio Mattarella said he refused to approve populist leaders' choice of an economy minister who has expressed anti-euro views because the appointment would have "alarmed markets and investors, Italians and foreigners." Mattarella spoke to reporters Sunday night after Premier-Designate Giuseppe Conte announced that he didn't succeed in forming what would have been Western Europe's first populist government. (Fabio Frustaci/ANSA via AP)

ROME (AP) — All eyes are on Italian President Sergio Mattarella after he vetoed the proposed euroskeptic economy minister of what would have been Western Europe’s first populist government.

News reports said Mattarella would convene the former International Monetary Fund official, Carlo Cottarelli, to the presidential palace on Monday and ask him to form a technical government that can lead Italy until early elections.

Markets have largely welcomed Mattarella’s decision to put an end to the proposed government of the anti-establishment 5-Star Movement and right-wing nationalist League, which had insisted on Paolo Savona as economy minister. Savona has questioned whether Italy should ditch the euro as its currency.

The spread of points between Italy’s bonds and benchmark German bonds, which had grown alarmingly last week, fell early Monday.