Tense talks aimed at forming a new Italian government inched forward on Wednesday as two major political parties, struggling to bury years of hostility and avoid snap elections, agreed to re-install Giuseppe Conte as prime minister.

The anti-establishment 5-Star Movement and the opposition center-left Democratic Party (PD) entered formal coalition talks after a ruling alliance between 5-Star and the right-wing League party collapsed this month after prolonged infighting.

The talks, which remain tense and could still break down, had been at risk of collapse over who should be named prime minister, but the PD confirmed Wednesday that it had dropped its opposition to Conte, removing one big barrier to a deal.