Italy's premier-designate has told the president he has been unable to form what would have been western Europe's first populist government.
A presidential palace official told reporters Sunday night that Giuseppe Conte "has given back the mandate" to try to form a government that President Sergio Mattarella gave him four days earlier.
Separately, right-wing leader Matteo Salvini indicated in remarks to supporters Sunday that he had refused to submit to a presidential veto of his choice of a euroskeptic economy minister.
Mattarella is staunchly pro-Europe.
Conte says he tried his hardest to form the country's next government and had full cooperation from would-be coalition partners, the populist 5-Star Movement and League parties.
In a terse comment to reporters after he relinquished a presidential mandate to put together an acceptable Cabinet, Conte said he "gave the maximum effort, attention, to carry out this task with the full collaboration" of the 5-Star Movement and League.
Conte, a University of Florence law professor without political experience, received the mandate last week from staunchly pro-Europe President Sergio Mattarella.
Assembling a Cabinet acceptable to both Mattarella and the populist partners foundered on League leader Matteo Salvini's insistence on a euroskeptic economy minister.
Italian President Sergio Mattarella said he refused to approve populist leaders' choice of an economy minister who has expressed anti-euro views because the appointment would have "alarmed markets and investors, Italians and foreigners."
Mattarella spoke to reporters Sunday night after Premier-Designate Giuseppe Conte announced that he didn't succeed in forming what would have been Western Europe's first populist government.
Mattarella said: "Every day, the (bond) spread goes up, it raises our debt" costs.
The president didn't immediately announce his next move, which could include appointing a non-political premier to guide the country back to the polls after the inconclusive national election held March 4.