ROME, Aug 31 —Talks between Italy’s anti-establishment Five Star Movement and the Democratic Party resumed today after a quarrel that had threatened to stop the nascent coalition in its tracks.

The parties, former foes who have agreed to govern together to prevent Italy going to early elections, were tentatively up-beat after the policy discussions, which were also attended by premier-designate Giuseppe Conte.

“We have taken some steps forward,” said Graziano Delrio, lower house leader of Italy’s Democratic Party (PD).

There would be further talks with the Five Star Movement (M5S) in the coming hours, he added.

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Conte has been tasked with forming a new government following the collapse of Italy’s populist coalition earlier this month.

On Friday the M5S—which has far more seats in parliament than its new ally—had warned that the deal could still fall apart, should the PD not agree to a list of its key demands.

The suggestion by the Movement’s chief, Luigi Di Maio, that he was ready to pull the plug and return to the polls alarmed the markets and angered the PD.

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“We’ll see over the coming hours,” Five Star’s Senate chief Stefano Patuanelli told reporters Saturday, but the preliminary talks had gone well, he added.

The party’s lower house leader Francesco D’Uva denied press reports that some deputies within the Movement were irritated by Di Maio’s Friday ultimatum, saying “I haven’t heard any whining”.

Italy has been in political turmoil since hardline interior minister Matteo Salvini, head of the far-right League, pulled his support from a coalition with the M5S.

The PD-M5S tie-up would keep the far-right out of power, while a return to the ballot boxes would likely favour the popular, anti-immigrant Salvini. — AFP