Italian Prime Minister to Resign, Declaring End of Coalition

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ROME—Italy’s government collapsed, plunging the economically fragile country into deeper political turmoil, and triggering a scramble to form a new governing coalition to keep the increasingly popular far-right out of power.

Prime Minister Giuseppe Conte announced his resignation in a speech to the Senate on Tuesday, blaming far-right Interior Minister Matteo Salvini for causing a political crisis as Italy looks to draw up a challenging budget to keep its parlous finances on track.