Italy’s warring political parties struck a deal late Wednesday to form a new government that shunted aside Matteo Salvini, the hard-right leader who dominated the country’s politics for more than a year and threatened to drastically reorient Italy’s place in Europe.

The sudden turnabout in Italy’s politics just a week after the country’s nationalist-populist coalition collapsed was a relief to the European establishment after 14 months of euroskeptic provocations, anti-migrant crackdowns and flouting of the bloc’s financial rules.