Italy PM Renzi to resign today as reform referendum fails

Italy’s president, Mr Renzi announced his resignation after his plan to reform the constitution was rejected by voters. Italy’s president will decide whether to appoint a new PM or hold elections. There are concerns the instability may trigger a deeper crisis for Italy’s already vulnerable banking sector.

  • A consortium organising a possible bailout for one leading bank, Banca Monte dei Paschi di Siena, is meeting to consider whether to pursue the rescue bid.
  • With most ballots counted, the No vote leads with 60% against 40% for Yes, with a 70% turnout.
  • Mr Renzi staked his political future on his attempt to change Italy’s cumbersome political system. He wanted to strengthen central government and weaken the Senate, the upper house of parliament.
  • His opponents – including some within his own party – had argued that the reforms would give the prime minister too much power. The electorate agreed.
  • But the referendum was more than a vote on constitutional reform, it was widely regarded as a chance to reject establishment politics.
  • It was a resounding victory for the No camp, a medley of populist parties headed by the Five Star Movement, 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.

Italy

  • Italy is a unitary parliamentary republic in Europe.
  • Located in the heart of the Mediterranean Sea, Italy shares open land borders with France, Switzerland, Austria, Slovenia, San Marino and Vatican City.
  • Italy has a capitalist mixed economy, ranking as the third-largest in the Eurozone and the eighth-largest in the world.
  • Rome is the Capital city of Italy

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