Italian Prime Minister Matteo Renzi’s resignation from office on Sunday night after the unexpectedly heavy referendum defeat opens a period of political instability and high risks of market volatility, declaring as winners populist and anti-establishment parties but leaving on the ground no sound government alternative.
Almost 60% of Italians voted against the constitutional reforms promoted by Renzi to scrap the Senate of many of its legislative powers and modernize Italy’s rusty institutional framework, speeding-up the decision-making process. If the reform had passed, it would have been the first major constitutional overhaul after the 1946 referendum when Italians were called to choose between the monarchy and the republic.
But for the majority of Italians the referendum stood as a “no” vote of protest against Renzi’s “one-man show” leadership. Many voters were convinced by the slogans and rhetoric of populist parties such the Five Star Movement and the Northern League who are now calling for an early vote and a “new era” in European politics, pushing for an exit of Italy from the eurozone.
Source: for MORE