ITALY: President Mattarella names Cottarelli stop-gap PM

Italian President Sergio Mattarella has asked an ex-IMF economist to form a government as the country faces fresh political turmoil. Carlo Cottarelli became known as “Mr Scissors” for his cuts to public spending in Italy. His appointment came after efforts by Italy’s two populist parties to form a coalition government collapsed. But the move is […]

Italian President Sergio Mattarella has asked an ex-IMF economist to form a government as the country faces fresh political turmoil.

Carlo Cottarelli became known as “Mr Scissors” for his cuts to public spending in Italy.

His appointment came after efforts by Italy’s two populist parties to form a coalition government collapsed.

But the move is a temporary measure and the PM-in-waiting says he will hold new elections by early next year.

The prospect of elections as early as September hit European financial markets on Monday with analysts suggesting the move might simply delay a future populist government that wants to renegotiate key eurozone debt agreements.