Italy's far-right League and the nominally anti-establishment Five Star Movement (M5S) have agreed anew to form a government after their previous much-criticized efforts failed. The parties again nominated Giuseppe Conte, who had given up on assembling a Cabinet over the weekend, for prime minister. Matteo Salvini and Luigi Di Maio, respectively the leaders of the League and M5S, would serve as ministers in Conte's government, according to plans announced on Thursday.

"All the conditions have been met for a political M5S-League government," said the party leaders in a joint statement released to news agencies.

Citing sources close to the talks, Reuters reported that Di Maio would lead the Industry Ministry and Salvini could head the Interior Ministry. European Affairs would go to the euroskeptic Paolo Savona, whom Italian President Sergio Mattarella had rejected for finance minister, and Enzo Moavero Milanesi, an academic and lifelong politician, would become foreign minister, the sources told Reuters.

Savona's rejection as finance minister had toppled the previous attempt to set up a coalition, when the League pulled out of the process in protest at what party leader Salvini called pressure from the "powers-that-be, the markets, Berlin and Paris."

After the initial effort to form a government had failed, Mattarella nominated Carlo Cottarelli, a former official with the International Monetary Fund, to form a stopgap government until Italy could hold new elections, but his efforts received no support from the parties.

mkg/msh (Reuters, AFP, dpa)