Italian PM unveils new government, but centre-right ally threatens to quit

New Italian Prime Minister Paolo Gentiloni unveiled his government on Monday, keeping almost all former ministers in place in a move aimed at reassuring financial markets.

But a small centre-right party that had supported the previous premier, Matteo Renzi, said it might not back the new government, raising doubts over whether Gentiloni will have the numbers in parliament to form a majority.

In a rapid transfer of power from Renzi, who quit last week after losing a Dec. 4 referendum on constitutional reform, Gentiloni took just a day to put his team together.

 “I’ve done my best to form this government as quickly as possible,” Gentiloni, 62, told reporters after presenting his list of ministers to President Sergio Mattarella.Gentiloni, who was Renzi’s foreign minister, said he would follow policies similar to those of his predecessor and urge the European Union to be more “growth-oriented”.

He also pledged particular attention to the under-developed south which voted overwhelmingly against Renzi in the referendum, creating a minister for the region.

Among those reconfirmed in their post was Economy Minister Pier Carlo Padoan, who is overseeing Treasury efforts to prevent Italy’s third largest bank, Monte dei Paschi di Siena, from collapsing under its bad loans.

Many other key ministers, including for defence, industry, health and justice, remained unchanged, with the centre-left Democratic Party (PD) maintaining the lions’ share of positions.