Published On:December 5, 2016, 7:32 pm
Italy’s Prime Minister Matteo Renzi has given his resignation after bearing a great defeat on Sunday in a referendum over his plan to reform the constitution, inclining the euro zone’s 3rd largest economy into a political mayhem.
His decision to quit after two and a half years in office deals a big blow to the European Union, which as it is lurching from several crises and trying to overcome anti-establishment forces that have battered the Western world this year.
The euro dropped down to 20 month lows as compared to dollar, with more markets concerning the instability in euro zone’s 3rd largest economy could reignite a dormant financial crisis and deal a pounding blow to Italy’s brittle banking sector.
It is possible that Renzi’s resignation might probably open doors to early elections next year and to the potential of an anti-euro party, the opposition five star movement, garnering power in the core of the solo currency. 5-star campaigned hard for a ‘No’ vote.
Renzi stated in a certain televised address to the nation, "I take full responsibility for the defeat." Furthermore saying that he would hand over his formal resignation to President Sergio Mattarella on Monday.
"Tomorrow the President of the Republic will have a meeting with me and I will hand in my resignation," Renzi said. "I take on full responsibilities for defeat and so I say I lost, not you," he told his supporters.
Mattarella will have to go on board on a round of consultations with his party leaders prior to naming a new prime minister.
Early predictions mentioned that Renzi managed to succeed a little more than 40% of the vote on Sunday following months of bitter campaigning which cavitied him against all major opposition parties, which includes the anti-system 5-star movement.
All the Italian parties must now work together on the new electoral law, with the 5-star urging a rapid deal to open the way for elections early in 2017, which is a year ahead of the schedule.
The Opinion polls demonstrated Renzi’s Democratic Party (PD) is neck and neck with the 5-star, that has already called for a referendum on Italy’s membership of the euro currency.
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