Italy's League leader dismisses talk of president's impeachment

Italian President Sergio Mattarella addresses the media after meeting Italy's premier-designate Giuseppe Conte in Rome on Sunday

Italy fell into political chaos Sunday after the presidential veto of a euroskeptical finance minister caused the apparent collapse of an attempt to form Western Europe's first fully populist government.

President Mattarella's rejection of a eurosceptic being appointed as economy minister plunged the country into a political crisis, with the leader of one of the coalition parties calling for the impeachment of the head of state.

The leaders of the two anti-establishment parties trying to field a government, the far-right League and the 5-Star Movement, accused President Sergio Mattarella of betraying the constitution and demanded a new vote as soon as possible.

Mattarella said Conte refused to support "any other solution" and then, faced with the president's refusal to approve the choice of Savona, gave up his mandate to be prime minister.

The president, however, took pains to explain that he was fully in his constitutional right and duty to reject Mr Savona as economy minister, saying he had repeatedly asked for a minister who would not be perceived as entertaining Italy's exit from the euro.

10 2008 shows the 81 hold economist Paolo Savona looking on during a meeting in Rome. Paolo Savona chosen by the Italian populists to be the new finance minister is an eurosceptic economist very critical of Germany who made

"It's an institutional clash without precedent", Di Maio said on a live-streamed Facebook video.

Savona has had high-level experience at the Bank of Italy, in government as industry minister in 1993-94, and with employers' lobby Confindustria.

Mattarella was expected to ask the former International Monetary Fund official to assemble and lead a government of "technocrats" until early elections.

"When the people give more than 51 per cent of consensus to political forces that want to represent the interests of the Italian people, they find a way to block everything".

Di Maio also scathingly criticized Mattarella's veto of Savona as "incomprehensible".

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An irritated-looking Mattarella said he would reveal his next move "in a few hours".

Italian President Sergio Mattarella has used a shady pretext to turn down a Euro-skeptic coalition pick for economy minister, as he seeks to mold a cabinet after own political views, an MP from the coalition told RT.

The Milan stock exchange building is seen in downtown Milan March 18, 2013.

Markets rallied on the news that Italy's economy, the euro zone's third-biggest, would not be guided by a government hostile to the single currency.

"Although it would be disrespectful to Italians if this government doesn't get started because it's unpleasant to someone in Berlin or Brussels".

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Anticipating Mattarella's decision, Salvini seethed.

A technical government will still be subject to votes of confidence in both houses of parliament, and the 5-Stars and League made clear Cottarelli wouldn't have their support.

On Monday, Salvini threatened to break his alliance with pre-election right-wing coalition partner Silvio Berlusconi should the media mogul's Forza Italia party vote for the government.

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