New possibilities' have emerged to form Italian government

Earlier today, the PM-designate, Carlo Cottarelli,  former IMF economist, who was chosen after the failure of populist parties to get their cabinet approved, had said that discussions to form an interim government have been moving ahead. 

Cottarelli added:

"This circumstance, also considering market tensions, has compelled me to wait for further developments."

 Two populist parties, Italy's League and 5 Star, have been forced to the sidelines, as Cottarelli attempts to steer the country towards fresh elections next year. Italy's League leader Salvini says he hopes a government can be formed but 'can't swap ministers around'.

However, Italy’s Di Maio of 5 Star had said earlier that they had never sought a euro exit and are willing to propose a new Finance Minister. The parties have vowed to use their parliamentary majority to sabotage any government with Cottarelli at the helm, raising the specter of another national vote as early as July.