Mubasher: Italy’s Prime Minister Giuseppe Conte on Thursday announced that he was authorised to form a new left-wing coalition government, CNBC reported.

The opposition Democratic Party (PD) set aside its differences with the anti-establishment Five Star Movement (M5S) to create the new government.

They agreed that Giuseppe Conte should stay on as prime minister.

Last week, Conte revealed his intention to resign from his position after a rocky power-sharing agreement between M5S and the right-wing Lega fractured.

After consultations with Italian President Sergio Mattarella, M5S reached out a new arrangement with PD on Wednesday evening.

Today, Mattarella met with Conte and handed him a fresh mandate to form a government, which Conte accepted, and which will allow him to stay on as Italian leader.

“In the coming days I will return to the president of the republic ... and submit my proposals for ministers,” Conte said.