Italian PM Resigns

Italian PM Matteo Renzi resigns after voters rejected his constitution reform plan.

14:26 05 December 2016

Italian Prime Minister Matteo Renzi has announced his resignation following referendum defeat.  

 

Mr Renzi staked his political future on his attempt to change Italy’s cumbersome political system. However, his opponents argued that the reforms would give him too much power and the electorate agreed with the No vote leading with 60per cent against 40per cent for Yes. 

 

Mr Renzi’s defeat was a resounding victory for the No camp, which capitalised on Mr Renzi’s declining popularity, years of economic stagnation and the problems caused by tens of thousands of migrants arriving in Italy from Africa. 

 

There are now concerns that the instability may trigger deeper crisis for Italy’s already vulnerable banking sector. Italy is met with threat of banking crisis and political turmoil following news about the results of the referendum. EU is bracing itself for a bumpy ride ahead as there are more unpredictable votes in 2017 in France, Germany and the Netherlands. 

 

Mr Renzi is expected to hand over his resignation to President Sergio Mattarella after the final cabinet meeting. It is likely that the president will appoint a caretaker administration led by Mr Renzi’s Demoractic party than to hold an early election.