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The leader of Italy's largest political party called for the country's president to be impeached after choosing to veto a choice for economy minister.

Italy's president invited economist Carlo Cottarelli to the presidential palace on Monday amid speculation he would ask the former International Monetary Fund official to form a technical government following the collapse of what would have been Western Europe's first populist government.

Both Salvini and Di Maio had staunchly backed Savona, and pressed Mattarella regarding the proposed government team in separate meetings with the head of state earlier on Sunday afternoon.

Conte, a law professor who had been named as the coalition's prime minister, resigned, telling reporters that he "gave the maximum effort, attention, to carry out this task with the full collaboration" of both the 5 Star Movement and League.

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The President's refusal to ratify the coalition cabinet could put Italy on track for yet another election, continuing the political deadlock in the country.

Italy's president summoned Conte to his office on Sunday in hopes of breaking a long-running political deadlock and open the way for the formation of a coalition government.

The election last March did not deliver a clear victor, and although Cinque Stelle emerged as the largest single party, it was forced to seek a coalition partner.

Mattarella said: "Every day, the [bond] spread goes up, it raises our debt" costs.

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Mr. Salvini said that he had expected, as of Monday, to be Italy's interior minister, responsible for security and migration, and had been thinking, "I can't wait to send home a whole lot of illegals". League leader Salvini and fellow eurosceptic Luigi Di Maio of the 5-Star Movement agreed this month to join their rival forces in a coalition to break the political impasse.

His decision to exercise this right, which is enshrined in Article 92 of the Italian constitution, enraged the far-right League of Matteo Salvini and the anti-establishment Five Star Movement of Luigi Di Maio. Macron phoned him on Saturday to wish him "the best for the government that is about to be formed", Conte said in a Facebook post.

"The adhesion to the euro is a choice of fundamental importance for the perspectives of our country and our youth", Mattarella said. Either EU rules change or it makes no sense for Italy to remain a member of the bloc, he said.

With the president's rejection of Savona, the deal holding together the two rival parties, which won the most parliamentary seats in the March vote, risks falling apart, making another election this year likely. The new government would aim to reduce public debt and the budget deficit not with taxes and austerity, but through economic growth by boosting domestic and foreign demand.

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Otmar Issing, the European Central Bank's former chief economist, urged Italian media and politicians to stop bashing the euro.


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