Weeks of political deadlock ended in Italy as Enrico Letta of the centre-left became the new PM and formed a government.
Mr Letta, a 46-year-year-old leftist moderate, leads a broad-coalition government backed by his own Democratic Party and the conservatives of former prime minister Silvio Berlusconi.
The government will be sworn in on Sunday and then faces votes of confidence in both houses of parliament, possibly as early as Monday.
A general election in February proved inconclusive, with the electorate split among three main blocs and no party winning enough of the vote to muster majorities in parliament.
Following that a political stalemate had paralysed Italy, unnerving markets at a time of deep economic crisis.
Silvio Berlusconi is backing the new government Mr Letta is a pro-European, reform-oriented politician who has served as a minister in previous centre-left governments. Viewed as a bridge-builder, he is a nephew of Mr Berlusconi's long-time right-hand man, Gianni Letta.
He has said he wants to move quickly to tackle the economic problems plaguing Italy, the eurozone's third-largest economy.
The country is mired in its worst recession in decades and austerity measures pushed by the previous technocratic government led by Mario Monti have stirred anger across the nation.
"It's the only possible government at a time when Italy couldn't afford to wait any longer," said President Giorgio Napolitano, who earlier this week asked Mr Letta to form a government.
The new administration includes some of Mr Berlusconi's closest allies, including the secretary of his party Angelino Alfano, who will serve as deputy premier and interior minister.
Bank of Italy director general Fabrizio Saccomanni will take the powerful economy ministry and former European Commissioner Emma Bonino will be foreign minister.
Mr Letta (R) shakes hands with President Giorgio Napolitano The third-largest force to emerge from the Italian election, the anti-establishment Five Star Movement led by comic Beppe Grillo, has demanded change and ruled out any alliance with the traditional political parties.
It will remain outside of the government.
Mr Grillo has said the coalition government "is an orgy worthy of the best bunga bunga" - a reference to Mr Berlusconi's infamous parties.
The government was formed after days of tricky negotiations with all political forces - most notably with members of Mr Berlusconi's People of Freedom party.
Mr Letta faced some dissent within his own party from critics who did not want a deal with the scandal-tainted billionaire.
Some analysts say the new government will be short-lived and will be brought down by irreconcilable differences that can only be resolved through another general election.
Mr Letta vows to promote reforms to kick-start the economy and rejuvenate a political class tainted by scandal and despised by many in Italy for its privileges and perceived impunity.
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