Italy’s newly re-elected president Giorgio Napolitano is expected to name a candidate who will be charged with forming a new government on Wednesday.
It follows rapid talks with politicians to end the two month deadlock since February’s inconclusive general election.
Napolitano must choose someone who is able to get backing from the centre-left and centre-right to form a multi-party cabinet that is able to push through much needed reforms.
The 5-Star Movement of Beppe Grillo, which won a quarter of the vote, opposed the reappointment of Napolitano and has said it will stand in opposition to a governing coalition.
But others like People of Freedom party leader Silvio Berlusconi have shown their support. “We confirmed our position at these consultations,” he said.
“The country is in need of a strong, long-term government that can make important decisions and that takes its foundations from the democratic political forces in play,” he added.
Rumours that a government can be formed quickly gave a further boost to the financial markets in the eurozone’s third largest economy on Tuesday.
The two top prime ministerial candidates are former Prime Minister Giuliano Amato who is thought to be Napolitano’s first choice, though young centre-left mayor of Florence Matteo Renzi has also emerged as a possible candidate.
Opinion polls have shown that 38-year-old Renzi is Italy’s most popular politician, and Silvio Berlusconi’s PDL party has also shown some support for his candidacy.