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ROME—Italy's new Premier Paolo Gentiloni unveiled his team of ministers Monday, forming a new caretaker government that closely resembles the outgoing one and that must navigate choppy political waters in the coming months.

On Sunday morning, Italian President Sergio Mattarella had asked Mr. Gentiloni, who was foreign minister in the cabinet of outgoing Premier Matteo Renzi, to try to form a new government. Mr. Gentiloni, a leading member of Italy's center-left Democratic Party, presented a list of 13 ministers that includes most of the members of Mr. Renzi's cabinet, with just four changes.

Economy Minister Pier Carlo Padoan was reconfirmed, a decision dictated in part by the need to manage the crisis enveloping Banca Monte dei Paschi di Siena SpA, Italy's No. 3. lender. Angelino Alfano, who was Mr. Renzi's interior minister, will become foreign minister. Marco Minniti will take Mr. Alfano's place as the interior minister. Carlo Calenda will remain industry minister.

Mr. Gentiloni and his cabinet were sworn in at a quick ceremony on Monday evening. The new government must now win parliamentary backing in votes of confidence in each of the two chambers, which will occur on Tuesday and Wednesday, thus allowing Mr. Gentiloni to attend a European Union summit on Thursday in his new role.

The newly-born government already faced the first defection on Monday, as the small center-right group led by Denis Verdini—which had formerly backed the Renzi government—announced it won't support Mr. Gentiloni's cabinet in the coming confidence votes.

Mr. Mattarella has moved to quickly resolve the government crisis opened by the resignation of Mr. Renzi in the wake of a "no" vote in a popular referendum on Dec. 4. Mr. Renzi had heavily backed a constitutional reform that was the subject of the referendum.

Now, Mr. Gentiloni must lead a country that is deeply divided amid a surge in popularity of antiestablishment parties and is facing the possibility of early elections, perhaps as soon as next spring. Italian parties—including Mr. Renzi's Democratic Party—are pushing hard for elections to be brought forward from their current timetable of spring 2018.

But the premier-designate must first oversee the drafting of a new electoral law, in light of a court challenge to the current one and the fact that Italy now has different electoral rules for each of parliament's two houses.

But Mr. Gentiloni may face an impasse in that task, given that some opposition forces, particularly the antiestablishment 5 Star Movement, refuse to cooperate in drafting new electoral rules.

The 5 Star Movement has been especially emboldened by the rejection of the popular referendum, which it fiercely opposed. In the wake of the vote and Mr. Renzi's defeat, 5 Star's popular support has risen above 30%, making it Italy's largest party and edging out the Democratic Party, according to some recent polls.

"Mr. Gentiloni's government can't do much to address the deep fracture among Italian citizens highlighted by the referendum," said Sergio Fabbrini, politics professor at Rome's Luiss University. "This short-lived government risks remaining hostage to antiestablishment and anti-euro parties, which will see their popularity strengthening," ahead of the next elections.

In comments after unveiling his cabinet Monday, Mr. Gentiloni said, "We cannot deny the political difficulties emerging from the referendum and following political crisis—difficulties that we have to confront immediately with all our efforts."

Mr. Gentiloni, a soft-spoken veteran of the Democratic Party, will also work in the long shadow of Mr. Renzi in the coming months, given that the former premier will likely attempt a political comeback at the next parliamentary elections.

"The referendum defeat was a sound one and couldn't be ignored," said Franco Pavoncello, politics professor of Rome's John Cabot University. "But the outgoing premier is only 41 years old and he's the only real leader in his party. He has time to stage his comeback."

Write to Giada Zampano at giada.zampano@wsj.com

(END) Dow Jones Newswires

December 12, 2016 19:55 ET (00:55 GMT)

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