FX.co ★ Matteo Renzi resigns as Prime Minister of Italy

On December 4, Italy held a referendum on constitutional reforms which resulted in the “no” vote. Italian Prime Minister Matteo Renzi acknowledged defeat and announced his resignation. Experts note that the situation can trigger snap parliamentary elections and spur further instability in the EU.

In case of elections, opposition party the Five Star Movement is widely expected to win, which promotes the idea of Italy’s withdrawal from the EU. Its poll ratings stand at 30%.
The proposed constitutional changes would have touched the upper house of parliament, shrinking the Senate’s elected membership. However, 59.6% of votes were against the reforms.

Commenting on his defeat, Renzi said that only President Sergio Mattarella is now tasked with the decision over this situation.

Italy’s prime minister also congratulated his opponents but at the same time mentioned that the proposed reforms were crucial for the country.

On Monday, the euro plummeted to the lowest level since March 2016. The single currency dropped by 1.4% to 1.0505 against the dollar.