Sparking a new political crisis, Sergio Mattarella refused to approve the 5 Star Movement and the League's pick to head the economy ministry, Paolo Savona, an 81-year-old economist who has criticized the euro.
European stocks gave up early gains and bond yields recovered from lows as early elections loomed in Italy after the anti-establishment 5-Star and League parties abandoned plans to form a government.
Five Star leaders are discussing a possible attempt to seek Mattarella's impeachment, invoking a constitutional clause which says the president is not responsible for actions carried out as part of his office, except for high treason or for violating the constitution, a Five Star official said.
Italy's outgoing economy minister, Pier Carlo Padoan, said in a TV interview Sunday that the real problem isn't Savona, whom he described as having a good background for the post.
The PM said elections will be held no later than August unless he wins the confidence of parliament.
The credit rating agency said on Friday it may downgrade Italy's sovereign debt, citing risks of weakened public finances and a row back on past reforms.
The euro rallied against the dollar at the end of a day of drama that saw the prospect of a populist government determined to take on Europe recede for now.
Italy's efforts to form government break down as eurosceptic Savona rejected
The country could be headed for another election in the coming months. Mattarella is staunchly pro-Europe.
Italian President Sergio Mattarella received prime minister-designate Giuseppe Conte in a meeting that aimed to resolve a days-long standoff over the composition of Italy's next cabinet or lead to the appointment of a caretaker government.
Cottarelli first joined the IMF in 1988, following six years in the Bank of Italy's Monetary and Financial Sector Division.
"I have given up my mandate to form the government of change", said lawyer and political novice Giuseppe Conte, 53, plunging the country into a political crisis almost three months after March's inconclusive general election.
Mattarella vetoed the nomination, but the M5S and League refused to back down, both calling to impeach the president. Savona has questioned whether Italy should ditch the euro as its currency.
The Five Star/League coalition has a majority in both houses of parliament.
Mr Savona also said his position on debt was the same as that forged by the potential coalition allies in their programme - which says it will be reduced not through austerity or tax cuts, but through targeted investments and policies that boost economic growth.
Schulte has actually been in jail since being indicted for possession of child pornography last September. The implication of the Tor claims is that Schulte would only have used it if he had something to hide.
The disputed mystery audio clip that sounds like different things to different people, Yanny or Laurel has divided the Internet. And President Donald Trump ends the lighthearted video claiming "I hear covfefe ".
The teachers walked from the North Carolina Association of Educators office to the North Carolina State Legislative Building. More than three dozen school districts, including the 10 largest in the state, have chose to close classrooms as a result.
Born in Virginia in 1931, Wolfe went straight into reportage out of university, beginning at the Springfield Union in MA . He is survived by his wife Sheila, the cover designer for Harper's Magazine , his daughter Alexandra, and son Tommy.
Doral Police department said officers responded to the call at the resort in the early hours of Friday morning. The golf resort previously known as the Doral Resort & Spa was purchased by the Trump Organization in 2012.
Ryan Sheffield, who gave the president an F for his grammar, told Mr Trump he should probably "see me after class". But he left the door open for talks, saying officials were willing "to sit face-to-face at any time".
Abortions after 24 weeks are allowed only if the woman's life is at risk or the child would be born with a severe abnormality. "It's an added bonus that I get to see my family, but the referendum is the only reason I came back to be honest", she said.
Ireland voting today to loosen abortion ban
Effectively, that means abortion is banned in Ireland unless the pregnancy poses a real and substantial risk to the mother's life. Currently, abortion is only allowed when a woman's life is at risk, but not in cases of rape, incest or fatal foetal abnormality.
LeBron, Cavs push Celtics to Game 7
It sure has looked at times as though he relishes these moments, though James said otherwise at Cavaliers shootaround Friday. The Cavs have struggled to create shots outside of James, but when he's playing this well, it splits the difference.
Iran and European Union attempt to salvage deal
The commission said it hopes to have the measure in force before Augut 6 when the first batch of USA sanctions take effect. It remains to be seen exactly how the European Union will activate the Blocking Regulation.
Hyderabad: Day after Godavari mishap, 14 bodies found
Chief Minister N Chandrababu Naidu directed the officials to undertake rescue operations on a war footing. When the launch tilted, those sitting on the upper deck jumped into the river and were rescued by locals.
Tell us what you hear: Yanny or Laurel?
It seems fairly evenly split in Twitter debates in terms of which word people hear - which makes sense. He played it for his peers, who disagreed over whether the syllables formed "Yanny" or "Laurel ".
Warm weather gave me the win: Hamilton
I said I wanted to come and win in the way that I have won". "I am much happier with the vehicle ". He said, "It feels nice to be on the podium and nice to have a good clean race".