Italian Prime Minister Mario Draghi resigns

File image of Italian Prime Minister Mario Draghi (AP Photo)

Italian Prime Minister Mario Draghi resigned on July 21. His government will continue as a caretaker in the interim. A decision on fresh elections for the prime minister is expected to come soon, and if green-lit by the President would be held within 70 days.

Draghi conveyed his resignation to Italian President Sergio Mattarella on the morning of July 21, according to a statement from the President’s office. The statement was unclear on whether Parliament would be dissolved early to call for elections, Reuters noted.

Draghi is the former chief of the European Central Bank. His government was on shaky ground after three coalition partners withdrew their support on July 20. The resignation could have a negative impact across Europe as the continent battles recession and an ongoing energy crisis due to the Russia-Ukraine war.

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Reports had earlier said Draghi was expected to resign after the coalition collapse during the confidence vote. Speculation is on that early elections could be held in October.

"In the light of the vote taken by the Senate last night ... I am on my way to the president of the republic to inform him of my intentions," Draghi told the lower house of parliament, where he received lengthy applause from lawmakers. A Reuters photographer saw him enter the president's palace shortly afterwards.

Notably, Draghi had also tendered a resignation last week after one coalition partner failed to back him in a confidence vote on cost of living measures, but Mattarella had rejected it. Draghi was instead asked to seek broad approval from the coalition before Parliament to keep his seat until the planned end of the legislature in 2023.

Draghi lost support from the 5-Star, Forza Italia and League parties in his coalition. As per polls, the conservative bloc, including the far-right Brothers of Italy, could likely win a ballot.

(With inputs from AP, Bloomberg and Reuters)