Italy's new interim prime minister designate will try to form a new government on Tuesday.

Carlo Cottarelli's main function is to get the budget passed and to steady the markets after weeks of uncertainty.

The 64-year-old former senior International Monetary Fund (IMF) official, known as “Mr Scissors” for his role in imposing spending cuts, was named as Italy’s premier on Monday after President Mattarella vetoed the would-be coalition put together by two populist parties.

Cottarelli tried to soothe fears over the crisis in the eurozone’s third-largest economy on Monday. However, markets responded negatively: stocks were hit and the price of Italian debt shot up.