The Latest on Italy's political crisis (all times local):

10:20 a.m.

Germany's deputy foreign minister says he hopes there will be a "stable, pro-European" government in Italy soon, but has acknowledged that his country is in no position to offer advice after its own long-drawn-out effort to form a new administration.

Michael Roth told reporters in Brussels that Italy, a founding member of the European Union, has always been a reliable and integration-friendly partner. He said that "we expect Italy to do justice to this proud tradition in the future."

Roth said he doesn't want to discuss the constitutional situation, but "we hope that there will be a stable, pro-European government in Italy without delay."

He added: "We in Germany should hold back somewhat with advice on forming a government. We needed six months to form a new government."


9:20 a.m.

All eyes are on Italian President Sergio Mattarella after he vetoed the proposed euroskeptic economy minister of what would have been Western Europe's first populist government.

News reports said Mattarella would convene the former International Monetary Fund official, Carlo Cottarelli, to the presidential palace and ask him to form a technical government that can lead Italy until early elections.

Markets have largely welcomed Mattarella's decision to put an end to the proposed government of the anti-establishment 5-Star Movement and right-wing nationalist League, which had insisted on Paolo Savona as economy minister. Savona has questioned whether Italy should ditch the euro as its currency.

The spread of points between Italy's bonds and benchmark German bonds, which had grown alarmingly last week, fell early Monday.