Mario Monti

Italy's President Giorgio Napolitano said he will hand out a mandate for the formation of a new government on Friday in a bid to break a deadlock created by elections last month, but the identity of the possible prime minister is still a mystery.

Italy said two marines on trial for murder in India would return to the country by Friday, a stunning turnaround after Rome earlier unleashed a diplomatic furore by saying they would not go back.

Italian President Giorgio Napolitano said he will announce on Friday his decision on who will be asked to form a government after inconclusive elections in the austerity-stricken country and amid rising tensions in the eurozone.

Italy said two marines on trial for murder in India would return to the country by Friday, in a stunning turnaround after Rome earlier unleashed a diplomatic furore by saying they would not go back.

Italy's new parliament on Saturday elected a former human rights official and a former anti-mafia prosecutor as speakers of the lower and upper houses ahead of formal talks on forming a government after inconclusive elections.

Italy's new parliament met on Friday for the first time since a deadlocked election that left no clear winner and saw the astonishing rise of a protest party that wants a referendum on the euro.

European Union leaders wrestled with German demands for strict austerity and a French-Italian push for growth-friendly spending at a summit coloured by fears that rampant unemployment is destroying the bloc, and clouded by a bailout for Cyprus.

Outgoing Italian premier Mario Monti urged EU partners on Thursday to grant Italy and other countries facing pressures on public finances leeway to spend for jobs -- or face a voter backlash as he did last month.

His mother nursed the wounded in Paris during World War II, he biked around a divided Berlin as a boy and got lost in the London zoo, and he speaks French, German and Italian.

Beppe Grillo, whose anti-establishment party unexpectedly captured a quarter of the vote in Italy's inconclusive elections, wants to renegotiate his crisis-hit country's debt, according to a German report on Saturday.

Beppe Grillo, whose anti-establishment party unexpectedly captured a quarter of the vote in Italy's inconclusive elections, wants to renegotiate his crisis-hit country's debt, according to a German report on Saturday.

Italian leftist Pier Luigi Bersani on Friday held out the prospect of forming a minority government but was turned down by the rogue party whose votes he most needs, after elections that shocked Europe.

Italian left-wing leader Pier Luigi Bersani on Friday held out the prospect of forming a minority government based on a loose alliance in parliament following inconclusive elections, as Europe puts on pressure for a quick solution.

Italy's political gridlock deepened as a spat between the main leftist party and a new anti-establishment movement hit prospects for a new government, after elections that have spooked Europe.

Investors were wary on Wednesday after Italy's inconclusive elections gave a key role to an anti-austerity party that has ruled out joining a coalition government, setting the stage for a drawn-out stalemate.

Italian leftist leader Pier Luigi Bersani faced weeks of tough talks after admitting he had "come first but not won" key elections, as the markets reacted nervously to the political stalemate.

Italian leftist leader Pier Luigi Bersani admitted Tuesday he had "come first but not won" key elections and asked parties to help him push through reforms amid a political deadlock that sent markets tumbling.

Italian left leader Pier Luigi Bersani admitted Tuesday he had "come first but not won" crucial elections and asked parties to join him in key reforms to respond to Italians' most urgent needs.

Italy was at an impasse Tuesday after an election seen as crucial for the eurozone failed to produce a clear winner and provided a shock debut for a populist anti-austerity party, rattling world markets and setting off alarm bells across Europe.

Italy was at an impasse Tuesday after an election seen as crucial for the eurozone failed to produce a clear winner and provided a shock debut for a populist anti-austerity party, rattling world markets.