Italian president approves new populist coalition

Political leader of the 5 Star Movement, Luigi Di Maio, speaks to the crowd during a meeting in Naples
Leader of the 5 Star Movement, Luigi Di Maio. Marco Cantile/LightRocket via Getty Images

Italy's president Sergio Mattarella has approved a populist coalition government put forward by the 5 Star Movement and the League.

The big picture: The two populist parties, big winners in March's elections, had agreed previously to govern together but had their cabinet vetoed by President Sergio Mattarella. The economic program of the two eurosceptic parties has caused a storm in European markets the last two weeks.