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Italy unveils new government after two-month deadlock

Italy's prime minister finally unveiled a new government on Saturday, breaking a two-month stalemate that shook market confidence in the recession-hit country and tested the patience of European partners. Centre-left moderate Enrico Letta named as his deputy Angelino Alfano, from the centre-right party of former premier and billionaire tycoon Silvio Berlusconi. Fabrizio Saccomanni, a director at Italy's central bank, was handed the post of finance and economy minister, tasked with dragging the eurozone's third-largest economy from its worst recession in 20 years.

Italy's Letta updates president on coalition talks

Italian prime minister-designate leftist Enrico Letta was expected to update President Giorgio Napolitano Saturday on his efforts to strike a coalition deal and give Italy a much-awaited government. The presidency said the leftist 46-year-old was due to meet Napolitano at 1300 GMT but it was not known whether he had succeeded in breaking the two-month-old deadlock.

Italy PM-designate Letta expected at presidency: official mle/jmm

Italian leftist Enrico Letta, who has been expected to formally accept President Giorgio Napolitano's nomination as prime minister once he strikes a coalition deal, was expected at the presidency Saturday. Letta, who has led intense consultations with his centre-left Democratic Party and Silvio Berlusconi's right-wing People of Freedom party, is expected to meet Napolitano at 1300 GMT, the presidency said in a statement. mle/jmm

Italy's Letta courts old guard in bid for fresh politics

Italian leftist Enrico Letta was expected to reveal Saturday whether he has succeeded in uniting the country's feuding parties and persuading the old guard to step aside for a government of fresh talent. The moderate Letta, who has led two days of consultations with the parties in a bid to form a coalition, was said by sources close to his staff to be on the point of persuading the bickering left and right to work together.

Italy's leftist Letta has new government in his sights

Italian leftist Enrico Letta was expected to reveal Saturday whether he has succeeded in uniting the country's feuding parties and persuading the old guard to step aside for a government of fresh talent. The moderate Letta, who has led two days of consultations with the parties in a bid to form a coalition, was said by sources close to his staff to be on the point of persuading the bickering left and right to work together.

Italian government could be settled on Saturday - sources

By Paolo Biondi ROME (Reuters) - Italian prime minister-designate Enrico Letta could announce a new government on Saturday and spell out its programme early next week, political sources said on Friday, while outgoing premier Mario Monti said he did not expect to be a minister. Letta, deputy leader of the centre-left Democratic Party, has been in discussions to iron out remaining differences with Silvio Berlusconi's People of Freedom (PDL) party following an initial round of talks on Thursday.

Italian government could be settled on Saturday - sources

By Paolo Biondi ROME (Reuters) - Italian prime minister-designate Enrico Letta could announce a new government on Saturday and go before parliament to spell out its programme early next week, political sources said on Friday. Letta, deputy leader of the centre-left Democratic Party, has been in discussions to iron out remaining differences with Silvio Berlusconi's People of Freedom (PDL) party following an initial round of talks on Thursday.

Italy centre-right poses conditions for support of government

ROME (Reuters) - Italy's centre-right on Thursday said it would support a new government by Enrico Letta but only if the prime minister designate agreed to economic priorities, including the abolition of a much-hated tax on primary residences. Speaking after meeting with Letta, Angelino Alfano, secretary of the People of Freedom party (PDL), said his delegation was satisfied with the talks but more would be needed to discuss outstanding issues. (Reporting By Philip Pullella)

Italy's Northern League says will not join Letta government

ROME (Reuters) - Italy's regionalist Northern League party ruled out on Thursday joining the government that centre-left politician Enrico Letta is seeking to form but left it open on whether it would cooperate on some points. "We won't enter the government," Northern League leader Roberto Maroni told reporters after meeting Letta. "We'll wait for what the prime minister designate has to say but I think I can say we'll be in opposition," he said.

Differences with centre-right delay Italy's Letta

By Philip Pullella and James Mackenzie ROME (Reuters) - Italy's prime minister-designate Enrico Letta started "encouraging" talks on Thursday for a new government to end two months of political deadlock, but said significant differences with the centre-right would take more time to iron out. Letta, the 46-year-old deputy head of the centre-left Democratic Party (PD), said he would use Friday as a "day to reflect" on his chances of piecing together a broad coalition to govern the euro zone's third-largest economy.
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