UPDATE 1--Italy's 5-Star suspends talks aimed at forming new government

Italy's 5-Star Movement suspended talks on forming a new ruling coalition with the opposition Democratic Party (PD) on Tuesday, saying it would only reconvene them when the PD committed to retaining Prime Minister Giuseppe Conte as government leader. The anti-establishment 5-Star party and center-left PD, traditional political enemies, are trying to forge a government after 5-Star's 14-month-old coalition with the right-wing League party broke down this month after months of infighting.

Late on Monday night, 5-Star and the PD appeared close to a deal, with the PD indicating it had dropped a veto on Conte serving another term as prime minister. However, 5-Star called a halt to the talks on Tuesday in a statement that contrasted sharply with the previous day's apparent progress.

"Yesterday after four hours of talks, nothing was achieved," the statement said. "We cannot any longer work like this. Either the attitude changes or it's difficult. We will see the PD again when the party has given its OK to the reappointment of Conte." Conte, who belongs to no party but is close to 5-Star, resigned last week after League leader Matteo Salvini declared the governing coalition was broken and called for snap elections.

On Monday Conte took part in a four-hour meeting with 5-Star leader Luigi Di Maio and PD chief Nicola Zingaretti. 5-Star complained late in the night that the PD had not yet unequivocally backed Conte to lead the new government. PD said many details had still to be worked out.

PD and 5-Star were to have resumed talks at 0900 GMT, said the YouTrend, a digital magazine close to the PD. The two parties are due to report back to President Sergio Mattarella on Wednesday. If they have not sealed a deal by then, Mattarella will name a caretaker government and call early elections.