21:25 GMT09 August 2020
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    A former IMF senior official and Italy's premier-designate, Carlo Cottarelli, has refused to form Italy's government amid the ongoing political crisis in the country.

    "A political government is the best solution for the country," Carlo Cottarelli stated after his resignation from the post of interim prime minister was announced.

    Meanwhile, Italy’s populist Five Star Movement (M5S) and right-wing Lega Nord party have reached a new agreement on the formation of a coalition "political" government, the leaders of M5S and Lega announced on Thursday, thus averting the possibility of a new snap election.

    "Conditions have been created to form a political government of the M5S and Lega," Luigi Di Maio and Matteo Salvini said in a joint statement.

    Political Crisis in Italy

    The country has been in political crisis since the country's president, Sergio Mattarella, rejected the cabinet's proposal of lawyer Giuseppe Conte, who is supported by M5S and Lega.

    On Monday, Mattarella designated economist Carlo Cottarelli, a former top IMF official, as an interim prime minister and gave him the mandate to form the government.

    The political turbulence in Europe's fourth-largest economy has sent shock waves throughout the European, US and Asian stock markets as the euro plunged against the dollar, while the main indexes sunk amid fears for the future of the eurozone.

    READ MORE: MEP Blames EU, France, Germany for Pushing Italy Into Political Turmoil

    In the March election, M5S received slightly over 32 percent of the vote. The center-right coalition, including Lega, got 37 percent, while the Democratic Party won about 20 percent of the vote. None of the parties obtained the majority required to form a government.

    Following Mattarella's decision to reject the candidacy of Paolo Savona for the post of economy minister, M5S leader Luigi Di Maio called on the country's parliament to discuss the possible impeachment of the Italian president. Di Maio also called for holding new parliamentary elections after the impeachment of Mattarella.

    READ MORE: Lega Party Calls on Italian President to Elect New Parliament   

    coalition government, resignation, Lega Party, Five Star Movement (M5S), Carlo Cottarelli
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