Italy’s power struggle is rattling global financial markets, with investors fearful the looming prospect of fresh elections could be fought over the country’s role in the European Union and the euro zone.

Rome’s latest political crisis comes at a time of elevated tensions between euroskeptic populists, who emerged victorious from the March election, and pro-EU establishment lawmakers.

The euro zone’s third-largest economy has been without a government since an inconclusive vote in early March, with anti-establishment political groups abandoning their efforts to form a coalition over the weekend amid a dispute with the country’s head of state.

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