Financial markets welcome reprieve by sending the euro back up after being battered by bitter row over the formation of new government
The Italian president, Sergio Mattarella, has granted Italy’s two populist leaders more time to form a government in an attempt to stave off a snap election.
Mattarella signalled he was ready to install a technocrat government if a deal could not be reached, but decided to give Luigi Di Maio of the Five Star Movement and Matteo Salvini of the League more time to draw up a list of ministers that could be accepted by all parties, according to a source close to the presidential palace.
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