“Italy’s warring political parties struck a deal on Wednesday night to form a new government that sidelines Matteo Salvini, the hard-right leader who dominated the country’s politics for more than a year and threatened to drastically reorient Italy’s place in Europe,” the New York Times reports.

“The sudden turnabout in Italy’s politics was a relief to the European establishment after 14 months of euroskeptic provocations, anti-migrant crackdowns and flouting of the bloc’s financial rules.”

Axios: “Salvini, the leader of the far-right League party and perhaps the most popular politician in Italy, withdrew his support on Aug. 8 from the unlikely coalition he had formed with Five Star after the 2018 election. Salvini hoped fresh elections might allow him to become prime minister. Instead, his gamble has expelled his party out of power.”

“Italy plunged into political and economic uncertainty early Monday as Prime Minister Matteo Renzi said he would resign after voters decisively rejected constitutional changes, a step certain to reverberate across a European Union already buffeted by anti-establishment anger,” the New York Times reports.

“Mr. Renzi’s defeat, and the instability that his resignation is likely to cause, raised the prospect of punishment in the markets, but also a caretaker government staffed with technocrats appointed by the Italian president.”