Italian Prime Minister Giuseppe Conte will hand in his resignation to the head of state after convening the cabinet to inform ministers of his decision.
Thousands have attended protests against the former interior minister, who has built his platform on anti-immigration policies.
The deal between populist 5-Star Movement and centre-left Democratic Party, two historic enemies, is set to bring to an end what Italian newspapers have dubbed “the craziest crisis ever”.
Italy's Interior Minister Matteo Salvini likes to present himself as a devout Christian but the head of the Catholic Church has taken starkly different political stances.
Announcing his resignation, Italian Prime Minister Giuseppe Conte made a blistering attack on his own interior minister, Matteo Salvini, accusing him of sinking the ruling coalition and endangering the economy for personal and political gain.
In the middle of the holiday season, Italy seems set for renewed instability after Interior Minister Salvini called for a new election based on his party’s high polling.
More than 100 migrants stranded off the Italian coast cannot find a home, as Italy refuses to let them ashore until EU states offer them sanctuary.
Italy's culture ministry plans to revoke the lease on a monastery where a right-wing Roman Catholic institute close to former Trump White House adviser Steve Bannon was planning on training political activists.
French government spokesman Benjamin Griveaux says that the recall was prompted by months of "unfounded attacks" from Italian government members Luigi Di Maio and Matteo Salvini.
Prime Minister Giuseppe Conte says 47 rescued migrants aboard the Sea Watch NGO vessel could finally disembark after Italy and six other countries agreed to take them in.
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