The euroskeptic M5S and the anti-migrant League have said they're moving "quickly" to give Italy a government. But Italy's president has warned the parties against wreaking havoc on the country's status in the EU.
The parties said they're hoping "to determine everything rapidly to quickly give the country some answers and a political government."
Lawmakers representing both parties will meet on Thursday to negotiate legislative priorities for the coalition government. The agenda will form part of a formal coalition agreement similar to that in Germany.
But the Italian president, Sergio Mattarella, warned both euroskeptic parties against undermining the country's status in the EU, saying they would be "consciously tricking public opinion" by suggesting Italy could get on without the bloc. Both parties want to exit the eurozone and renegotiate EU budgetary restrictions.
Since the elections, Di Maio has signaled his party's willingness to form a government with the League if it ditched its alliance partner, the Berlusconi-led Forza Italia. On Wednesday, Berlusconi said he would no longer be an obstacle if the League wanted to try to form a government with M5S.
What do they want to change? Both M5S and the League have rejected what they see as Brussels-imposed budget limitations, saying they want to renegotiate such bloc-wide regulation.
They also want to hold a referendum on Italy's continued membership of the eurozone and reform the pension and tax system. Only M5S has signaled its intention to one day hold a referendum on Italy's membership in NATO.
What happens next? Italian President Sergio Mattarella has reportedly given the parties until Monday to inform him of their plans to form a government, which would include jointly nominating a prime minister. The proposal for a government must be approved by the president before it goes to a vote in Parliament.
Italy's political uncertainty weighs on the economy