ITALY finally has a new coalition government after tense negotiations saw pro-Europe compromise candidate Giovanni Tria chosen as the country’s finance minister.

The populist Five Star and far-right League capitulated to the demands of the markets in agreeing to Italian President Sergio Mattarella’s veto of Eurosceptic politician Paolo Savona.

They had previously called for Mr Mattarella’s impeachment over the decision, yet backed down after four days of talks to form a coalition government and avoid early elections.