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Reuters

Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on Sunday in a referendum over his proposals for constitutional reform.
“The experience of my government ends here,” Renzi said in a televised address to the nation after early voting results suggested his ‘Yes’ camp may have lost the referendum by as much as 20 points.
Watch: Italian PM Renzi announces his resignation


Renzi said he took full responsibility for the “extraordinarily clear” defeat and that on Monday afternoon he would convene his cabinet and then hand in his resignation to President Sergio Mattarella.
The euro fell sharply against the dollar on the exit polls, slipping to US$1.0550 from US$1.0625.
A trio of polls for various television stations saw the ‘No’ camp ahead by at least 8 percentage points. Within half an hour, projections based on the initial counts suggested Renzi could lose by as much as 20 points.

If confirmed, the result would represent a fresh blow to the European Union which is struggling to overcome an array of crises and was eager for Renzi to continue his reform drive in the euro zone’s heavily indebted, third-largest economy.
Defeat could also prompt fresh market ructions, especially in the banking sector which has lost almost half its value this year on the Milan bourse, hit by fears over its huge exposure to bad loans accumulated during years of economic downturn.
Renzi, 41, was appointed in 2014 promising to shake up hidebound Italy and presenting himself as an anti-establishment “demolition man” determined to crash through a smothering bureaucracy and redraw the nation’s creaking institutions.

Sunday’s referendum, designed to hasten the legislative process by reducing the powers of the upper house Senate and regional authorities, was to have been his crowning achievement.
However, his reforms so far have made little impact, and the opposition 5-Star Movement has claimed the anti-establishment banner, tapping into a populist mood that saw Britons vote to leave the European Union and Americans elect Donald Trump president.
Under Italian law, Renzi had to call a referendum on his plans to overhaul the constitution, but it was his decision to pin his future to the outcome, arguing that if Italy was not willing to accept his recipe for change he should leave office.
This move turned the vote into a defacto plebiscite on Renzi himself, uniting disparate opposition forces in a fierce battle to unseat Italy’s youngest prime minister that played out over months of relentless campaigning.

If he does resign, it does not necessarily mean that he will vanish from the political stage, as happened in Britain when David Cameron quit as prime minister after his Brexit defeat.
President Sergio Mattarella could ask Renzi to reconsider, calling on his sense of responsibility at a time of great market uncertainty. If however he refuses, the head of state will open a round of consultations with party leaders to find a new prime minister, who will have to draw up a new electoral law.
As head of the largest party in parliament, Renzi would have a big say on who should succeed him.
After voting in Genoa earlier on Sunday, Beppe Grillo, founder of the anti-euro 5-star Movement which backs a ‘No’ vote, said the country needed to go to new elections as soon as possible. His party is running neck-and-neck with Renzi’s Democratic Party (PD) in the opinion polls.
The biggest immediate loser if the ‘No’ camp has indeed triumphed could be Italy’s third-largest bank, Monte dei Paschi di Siena, which is bowed by bad loans and is looking to raise €5 billion (US$5.3 billion) this month to stave off collapse.

Investors are likely to shun the operation if political chaos prevails, meaning a state intervention will be needed to save it. Several other lenders also need a cash injection to stay afloat raising fears of a domino-effect crisis.
Economy Minister Pier Carlo Padoan sought to calm nervous markets on Friday, saying there was “no risk of a financial earthquake” if ‘No’ wins, though there may be “48 hours of turbulence”.
A November 25 Reuters poll suggested investors would expect to demand an extra 25 basis points in yield to hold Italian debt over its German equivalent if the reform is rejected, with the euro dipping 1.25 per cent.
The risk to stability, meanwhile, is enough to have the European Central Bank preparing to step in if needed.


Italy PM Matteo Renzi quits after massive referendum defeat

Italy's Prime Minister Matteo Renzi speaks after his referendum defeat. Photo: AFP

Demonstrators hold banners and shout as they protest against Italy's Prime Minister Renzi outside Chigi Palace in Rome, Italy, on Monday, Dec. 5, 2016. Prime Minister Matteo Renzi looks set to lose the constitutional referendum he's staked his job on, as exit polls showed Italians joining the global backlash against establishment politics. Photographer: Alessia Pierdomenico/Bloomberg

Policemen stand guard as supporters of the "NO" at the constitutional referendum celebrate near the Palazzo Chigi, on December 4, 2016 after the end of the vote in Rome. Italian voters on Sunday overwhelmingly rejected constitutional reform proposals on which Prime Minister Matteo Renzi has staked his political future, exit polls suggested. / AFP PHOTO / Filippo MONTEFORTE

epaselect epa05659304 Italian Premier Matteo Renzi (L) and his wife Agnese Renzi (R) cast their ballots in a polling station during the referendum on the government's constitutional reform in Pontassieve, near Florence, Italy, 04 December 2016. The crucial referendum is considered by the government to end gridlock and make passing legislation cheaper by, among other things, turning the Senate into a leaner body made up of regional representatives with fewer lawmaking powers. It would also do away with the equal powers between the Upper and Lower Houses of parliament - an unusual system that has been blamed for decades of political gridlock. EPA/MAURIZIO DEGL' INNOCENTI

epa05659840 Five-Star Movement (M5S) leader Beppe Grillo casts his ballot in a polling station during the referendum on the government's constitutional reform law in Genoa, Italy, 04 December 2016. The crucial referendum is considered by the government to end gridlock and make passing legislation cheaper by, among other things, turning the Senate into a leaner body made up of regional representatives with fewer lawmaking powers. It would also do away with the equal powers between the Upper and Lower Houses of parliament - an unusual system that has been blamed for decades of political gridlock. EPA/LUCA ZENNARO

Matteo Renzi’s free fall following referendum defeat mirrors his meteoric rise to power

Matteo Renzi speaking at a rally under a banner saying ‘future’ in Italian. Photo: AP

U.S. President Barack Obama, third left, walks with, from left to right, Italian Prime Minister Matteo Renzi, Canadian Prime Minister Stephen Harper, German Chancellor Angela Merkel, British Prime Minister David Cameron, French President Francois Hollande, European Commission President Jose Manuel Barroso and Japanese Prime Minister Shinzo Abe, after a G7 group photo in Brussels, Belgium, Thursday, June 5, 2014. (AP Photo/Charles Dharapak)

epa04074216 Italian Democratic Party (PD) leader Matteo Renzi (C) arrives to the PD office for a party meeting in Rome, Italy, 13 February 2014. Renzi, the energetic 39-year-old mayor of Florence, has since his election as PD leader in December launched a campaign against the government over its failure to implement promised reforms and boost the economy. Prime Minister Enrico Letta was set for a showdown with Renzi, who is rumored to be seeking to take over his job. EPA/ALESSANDRO DI MEO

epa04285953 Italian Prime Minister Matteo Renzi touches his head during his speech for a press conference at the end of the European Union summit, in Brussels, Belgium, 27 June 2014. EPA/STEPHANIE LECOCQ

A woman holds a banner reading "Renzi-Monti-Berlusconi = recession" during a demonstration organised by Italian General Confederation of Labour (CGIL) union on October 25, 2014 in central Rome as part of a nationwide protest called by the union to protest Prime Minister Matteo Renzi's plans to overhaul the labour market. AFP PHOTO/ Filippo MONTEFORTE

Demonstrators hold a banner picturing Italian Prime Minister Matteo Renzi with a prohibition sign and placards reading "PD (Democratic Party) go home I vote NO" during a "C'e chi dice NO" (some say no) rally, in central Rome, on November 27, 2016 calling to vote "no" for the upcoming referendum focused on a constitutional reform. Italy will hold a referendum on constitutional reform on December 4 in which Renzi has staked his political future on winning approval of a move to streamline parliament by replacing the Senate with a smaller, less powerful second chamber. / AFP PHOTO / Andreas SOLARO

epa05660262 (FILE) A file picture dated 24 June 2016 shows Italian Prime Minister Matteo Renzi reacts during a news conference at Chigi Palace in Rome, Italy. First exit polls on 04 December 2016 suggest a 'No' vote victory in a crucial referendum to which Renzi had tied his political future. The referendum is considered by the government to end gridlock and make passing legislation cheaper by, among other things, turning the Senate into a leaner body made up of regional representatives with fewer lawmaking powers. It would also do away with the equal powers between the Upper and Lower Houses of parliament - an unusual system that has been blamed for decades of political gridlock. EPA/ANGELO CARCONI *** Local Caption *** 52848922

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Renzi, was appointed in 2014 promising to shake up hidebound Italy and presenting himself as an anti-establishment “demolition man”


Italy PM Matteo Renzi quits after massive referendum defeat

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Renzi, was appointed in 2014 promising to shake up hidebound Italy and presenting himself as an anti-establishment “demolition man”

Renzi, was appointed in 2014 promising to shake up hidebound Italy and presenting himself as an anti-establishment “demolition man”