The PD plans to support a government of national unity, which would have to include parties now in opposition, two party sources said on Tuesday. Another voting law has been in place for the Senate since 2014.
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In a referendum Sunday, they rejected Renzi’s proposed constitutional reforms, which would have changed the balance of power between the executive and Parliament.
“The ball’s in President Sergio Mattarella’s court”, Renato Brunetta, a parliament whip for former Premier Silvio Berlusconi’s opposition Forza Italia party, said.
Prime Minister Matteo Renzi has handed in his resignation to Italy’s president, three days after losing a referendum he had staked his career on.
Mattarella is expected to sound out other party leaders on what to do next.
Meanwhile, Italy, a founding member of the European Union, was expected to reject a proposed constitutional reform, paving the way for new elections and possibly an anti-EU government.
“I’m leaving this country with less taxes to pay and more rights, and our party should be proud of that”, he said.
Spearheaded by Five Star, the biggest rival to Renzi’s Democratic party, the “No” campaign also capitalised on Renzi’s declining popularity, a sluggish economy, and the problems caused by tens of thousands of migrants arriving in Italy from Africa.
Almost 60 percent of Italian voters rejected the government’s proposal on constitutional reform.
All surveys in the month before a November 18 legal cut-off forecast Renzi would lose Sunday’s referendum, but none came close to predicting the extent of his crushing defeat. They were encouraged to vote “no” by all of the major parties in Italy outside of Renzi’s Partito Democratico (PD). If such a government is not possible, then the PD wants an early election.
The conclusion of Prime Minister Renzi’s leadership will likely bring Italy’s efforts to change the Italian economy to an end.
AMP Capital chief economist Shane Oliver, however, noted that Mr Renzi’s resignation does not guarantee a victory for 5SM, adding that an election is itself unlikely to be held before its due date in 2018.
But Mattarella told him to stay in office until passage of the budget law, which was done Wednesday afternoon.
The yield on Italy’s benchmark 10-year bond rose 12 basis points, or 0.12 percentage point, to 2.02 percent at 3:06 p.m.in Rome. Sources say he may agree to remain until the Senate approval of his government’s 2017 budget.
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It was unclear when Renzi might return to the Quirinal presidential palace to formally resign following the rejection by voters of constitutional reforms he had championed. First reaction to Renzi resigning is Euro selling, JPY buying, but more important event is parliament dissolution and general election in Italy which may not occur until 2017.
