Italy's President Sergio Mattarella said on Sunday he had rejected demands by the anti-establishment 5-Star Movement and far-right League to name an economy minister because he might have pushed Italy out of the euro.

His move effectively scuttled efforts at forming a coalition government, opening the way for possible early elections in the autumn following an inconclusive vote in March.

In a televised address, a sombre Mattarella said he was not to blame for the impasse, adding that he had proposed alternatives for the key economy ministry position, but his suggestions had been spurned by 5-Star and the League.