Italy's President to name PM

Italy's president Giorgio Napolitano is set to announce on Wednesday his choice of prime minister to form a new government and pull the euro zone's third largest economy out of a two-month political rut.

The new coalition government, which could take office in a matter of days, would be backed primarily by the rivals on the center-left and center-right, the same parties that had refused to cut a deal since national elections in late February.

The person in pole position to receive the mandate is former Prime Minister Giuliano Amato, although the mayor of Florence, Matteo Renzi and center-left deputy leader Enrico Letta have also emerged as possible candidates.

Silvio Berlusconi's People of Freedom (PDL), the center-left Democratic Party (PD) and the centrist Civic Choice movement of outgoing premier Mario Monti have all said they would cooperate with whoever Napolitano chooses.