Italy's Renzi officially steps down after referendum loss
Matteo Renzi, the Italian prime minister, stepped down on Wednesday after a bruising referendum loss, with growing speculation the move would lead to an early election next year.
Mr Renzi first vowed to step down on Monday but President Sergio Mattarella asked him to remain until the 2017 budget was approved.
Mr Renzi said on Twitter: "Budget law approved. Formal resignation at 7pm. Thanks to all and long live Italy".
There were frenzied political negotiations across Rome on Wednesday as attention turned to who would head a caretaker government to be decided by Mr Mattarella in the coming days.
Pier Carlo Padoan, finance minister, senate leader Pietro Grasso and Dario Franceschini, the culture minister, are among the frontrunners.
But media reports have also suggested Mr Renzi is backing calls from the populist Five Star movement and anti-immigrant Northern League for an early election perhaps in March or April, which could allow his revival if he remains head of his Democratic Party.
President Mattarella is expected to meet party leaders as soon as Thursday, a public holiday in Italy, to discuss who should replace Mr Renzi. The president wants to delay any ballot until ongoing electoral reform is completed.
Source: Telegraph
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