Matteo Renzi, the leader of Italy's centre-left Democratic Party, has formally accepted the role of prime minister and the mandate to form the new government.
Renzi said that he was aiming to give a “strong message'' to the international community that his government would enact electoral and economic reforms quickly to get over the country's economic hardships.
"I am aware of the responsibility, delicacy and extraordinary honour which comes from creating a government capable of bringing hope," Renzi said after nearly three hours of talks with the Italian president, Giorgio Napolitano.
"I will do everything possible to deserve the trust of deputies, senators and millions of Italians who are waiting for this government to provide concrete answers," he said.
Renzi, who had been serving as Florence mayor, will be Italy's youngest prime minister aged 39.
In Renzi's cabinet, the key post of finance minister has gone to Pier Carlo Padoan, the chief economist at the Organisation for Economic Cooperation and Development.
The interior ministry remains in the hands of Angelino Alfano, the head of the New Centre Right party, Renzi's coalition partner, while the position of foreign minister has gone to Federica Mogherini, a specialist of European politics.
Achieving the position through a Democratic Party power grab from Enrico Letta, the former prime minister, Renzi will be the third straight head of government to come into the office without being elected.