Italian Prime Minister Mario Draghi has resigned following the withdrawal of support of confidence by populist coalition partner Five Star withdrew on Thursday.
The former head of the European Central Bank has led a unity government since February 2021.
In a statement, he said the pact of trust that had sustained the unity government had gone.
However, the president refused to accept his resignation.
President Sergio Mattarella appointed Mr Draghi – a former ECB chief – to lead Italy’s post-Covid pandemic recovery and save the country from endemic instability.
He has now called on Mr Draghi to address parliament to provide a clear picture of the political situation.
The effect of President Mattarella’s intervention is not entirely clear. Mr Draghi is however expected to address parliament next Wednesday and with sufficient support could remain in office.
Even though the government had a comfortable victory in Thursday’s vote in the Senate with the help of other parties, the Draghi who is dubbed “Super Mario” had repeatedly warned that without Five Star’s support the government would have grave difficulty in to continue.
Mr Draghi visited President Mattarella after reflecting on his future, before issuing his statement of resignation.
“Today’s votes in Parliament are very significant from a political point of view. The national unity majority that supported this government since its creation no longer exists,” he said. After addressing the ministers, he returned to the Quirinale palace to tender his resignation to the president. With Elections due in early 2023, if the government does collapse, a vote is likely to take place this autumn. Several parties on the right are said to be keen on early elections, however given the period of political uncertainty such action is seen as potentially hazardous to Italy’s efforts to tackle a looming energy crisis and pass next year’s budget to secure EU funding. According to reports, attempts were made to resolve the coalition crisis. Milan’s stock market has already began to react to the news, as it tumbled 3.4% with anxiety spreading amongst investors in the eurozone’s third biggest economy. European Union Economy Commissioner Paolo Gentiloni, a former Italian prime minister, said earlier the EU’s executive was watching developments in Rome “with worried astonishment”.
The head of Italy’s industry group Confindustria said Five Star’s decision had shown “total irresponsibility”.
“Five Star was originally the biggest party in the coalition but has seen a string of defections and falling support. Former party leader Luigi di Maio accused it of a cynical plan to bring down the Draghi government to revive its own support, while dragging Italy to economic and social collapse” as per sky news
