Mario Draghi, the Italian prime minister, handed his resignation on Thursday to President Sergio Mattarella after his coalition government fell apart, plunging the country into political turmoil and hitting financial markets.
Mattarella’s office said in a statement that the head of state had “taken note” of the resignation and asked Draghi to remain in office on an interim basis.
The statement didn’t say what Mattarella would do next. Political sources said earlier this week that he would likely dissolve parliament and call early elections in October.
Italy’s coalition fell apart on Wednesday as three of Draghi’s top partners flouted a vote of confidence he had called to try to end divisions and renew their alliance.
The political crisis ended months of stability in Italy, during which Draghi helped shape Europe’s tough response to Russia’s invasion of Ukraine and boosted the country’s position in financial markets.
Italian bonds and stocks fell sharply on Thursday as markets braced for the European Central Bank’s first rate hike since 2011.
Draghi had already resigned last week after one of his partners, the populist 5 Star Movement party, failed to back him in a vote of confidence on measures to tackle the high cost of living.
Mattarella rejected the resignation and spurred Draghi to seek support in parliament in a bid to keep the coalition going until the planned end of the legislature in early 2023.
In a speech to the Senate, Draghi called for unity and laid out a range of issues facing Italy, from the war in Ukraine to social inequality and rising prices, but failing to win back the support of the 5 Star Movement. .
Furthermore, the right-wing parties Forza Italia and Liga decided to avoid the vote, saying they wanted a compromise that Draghi was willing to forge a new government without the 5 Star Movement and with new political priorities.
Polls indicate that the conservative bloc, which includes the far-right Brothers of Italy party, leads the way in a possible election.
