Italians could be about to find out what their next government looks like, after more than two months of political stalemate.
The anti-establishment parties, Five Star Movement (M5S) and Lega, have until Sunday to come up with an agreement or Italy will be headed for a repeat of its March election. The two parties said in a statement that they want to "provide a response and a political government for the country as soon as possible" even though previous talks have failed to produce a successful outcome. Back in March, M5S was the most voted for party in the election but didn't receive enough votes to govern alone. Meanwhile, Lega saw a better-than-expected result and was endorsed to form a government with the backing from other right-wing parties.
However, analysts are quite negative about the upcoming executive. Whatever the deal the two parties come up with is not going to fix the country's economic problems, they believe.
Wolfgango Piccoli, managing director at analysis firm Teneo Intelligence, told CNBC's "Squawk Box Europe" that there will be damage on the fiscal front.