There may be another vote in Italy after all, or there may be impeachment of the Italian President.

Efforts to form a coalition government collapsed on Sunday after the Italian president rejected a eurosceptic pick for the key economy ministry, triggering a possible constitutional crisis and opening the prospect of fresh elections.

France24 reports Italy's PM-Designate Gives Up on Efforts to Form a Government, May Mean New Election.

The leaders of the two parties trying to field a government, the far-right League and anti-establishment 5-Star Movement, accused President Sergio Mattarella of abusing his authority and working under the orders of European powers.

5-Star leader Luigi Di Maio, whose party won the most seats at an inconclusive March 4 vote, demanded that parliament impeach Mattarella, raising the spectre of political turmoil in the eurozone's third biggest economy.

Looking to allay investor concerns, Mattarella vetoed on Sunday the choice of 81-year-old economist Paolo Savona, a vocal critic of the single currency, to the pivotal economy post. Prime Minister-designate Giuseppe Conte promptly abandoned his efforts to form a government.

In a sombre, televised speech, Mattarella said he had accepted all the suggested ministers bar Savona. "I asked for that ministry an authoritative political figure from the coalition parties who was not seen as the supporter of a line that could provoke Italy's exit from the euro," he said.

Shortly afterwards, he summoned former International Monetary Fund (IMF) senior official Carlo Cottarelli for a Monday morning meeting -- an indication he may be considering asking him to head a government of unelected technocrats.

Polls have suggested that the League, which won 17 percent of the vote in March, would see its support surge in any early ballot, while support for 5-Star remained strong.

News of Mattarella's veto sent a shockwave through Italy.

The leader of the nationalist Brothers of Italy party, which had an electoral pact with the League, said the head of state should be impeached, accusing him of abusing his position.