The Identity and Democracy Party, formerly known as the Europe of Nations and Freedom Party, becomes the assembly's fifth-biggest bloc, immediately after the Greens.
The Italian government passed an emergency decree limiting the entry of ships into its territorial waters to curb the activity of migrant rescue boats operated by charity foundations.
Rome's first populist mayor, Virginia Raggi, presented a new law which allows authorities to exile the badly behaved tourists from the city's historic center for 48 hours.
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.
With most votes counted across the continent of a half billion people, Mateo Salvini's hardline League party emerged as the largest in Italy, while Marine Le Pen inflicted a painful defeat on pro-European French President Emmanuel Macron.
While far-right parties rejected values like protecting minorities and basic human rights, Merkel told a press conference in the Croatian capital Zagreb, "politicians being for sale plays a role, and we must act decisively against all of that".
Italian Deputy Prime Minister Matteo Salvini is confident his newly forged alliance will win a record number of seats at the May 23-26 vote. Parties from 11 countries attended the rally in Milan.
While one has borne the brunt of the migrant crisis from the embattled country, the other seeks to reap its benefits.
The new bloc would be called the European Alliance for People and Nations and would challenge the three centrist parties that have dominated the EU Parliament for more than 40 years.
National Rally leader Marine Le Pen no longer wants to leave the EU and is now working towards closer ties with the European far-right.
Ankara harshly condemns French and Italian involvement in the disputed 1915 events between Turkey and Armenia, describing them as "abuse of history and the law" and saying its European allies are taking decisions for political reasons.
"Poor castaways, who hijack a merchant ship that saved them because they want to decide the route of the cruise," Italy's interior minister, Matteo Salvini says.
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