Italy sparks fears of new European crisis

BRUSSELS, May 22 (AFP): Fears of a new European crisis grew Tuesday over Italy's incoming eurosceptic government, which has vowed to reject the Brussels austerity diet and to crack down on immigrants.

Governments and markets have suddenly become unsettled as the prospect of populists taking the helm of the EU's fourth biggest economy suddenly becomes a reality after months of deadlock.

A period when the rest of the world seemed to be in denial finally seemed to be over as Italy's president was tasked Tuesday on whether to approve little-known lawyer Giuseppe Conte as prime minister.

The anti-establishment Five Star Movement and the anti-immigrant League-together the EU's worst nightmare-put his name forward to represent the biggest winners from March's election.

"There are some things there that are worrying, yes," EU Trade Commissioner Cecilia Malmstrom told reporters in Brussels on Tuesday when asked about the Italian situation. Fear number one is that Italy, a founder member of both the EU and the euro, is set to irk financial markets and trigger a new eurozone crisis by refusing to stick to public spending and debt targets set by Brussels.