Italian PM Matteo Renzi's referendum defeat on Sunday has left Italy facing political and economic uncertainty.
Mr Renzi announced he was stepping down after his constitution reform plan was rejected by voters.
Italy just said “no thanks” to Globalism and elected a nationalist!
From The WashingtonPost
BRUSSELS – Europe’s embattled political establishment lost another round Sunday in its effort to thwart the anti-elite movement, as Italian Prime Minister Matteo Renzi resigned following a voter rejection of his constitutional reforms. But a center-left presidential candidate in Austria handily defeated his far-right challenger.
The thorough rejection of Renzi’s efforts to streamline lawmaking was a significant boost for the country’s surging populist forces just weeks after Donald Trump prevailed in the United States. Renzi’s loss also risked unleashing financial upheaval in Europe’s third-largest economy, as Italy’s weak banks struggle to contain the fallout.
But the surprisingly strong presidential victory in Austria for an elder statesman formerly of the Green Party suggested that there were still some limits to a wave of anti-elite anger that began with British vote to leave the European Union and continued with Trump last month.
A populist takeover of Italy is still an uncertain prospect, since Renzi’s center-left Democratic Party remains in control of the parliament and national elections do not have to be called until 2018. But much will depend on the makeup of the next government and how the anti-immigrant, euroskeptic parties capitalize on their success.
“I have not managed to reach victory,” an emotional Renzi said early Monday, conceding defeat at the Palazzo Chigi, his official residence. “My government ends today.”
He met President Sergio Mattarella and will offer him his resignation later. Mr Mattarella must 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 on Monday to consider whether to pursue the rescue bid.
Why did he lose?
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.