Italy's PM Draghi Resigns after Coalition Unravels

After the collapse of his national unity government, Italy’s Prime Minister Mario Draghi on Thursday went to President Sergio Mattarella to resign.

The Italian presidency announced that the prime minister gave his resignation to Mattarella who asked him to remain in his position to charge of regular business.

A statement mentioned that Draghi had resigned as a prime minister and as the head of his government, adding that Mattarella "took note" of the decision and that in the meantime “the government remains in charge of regular business.”

The Italian president is likely to dissolve parliament and call early elections in September or October, according to analysts. Until then, Draghi may remain as the head of the government.

The resignation came a day after three parties in the government coalition abstained on Wednesday from participating in the confidence vote in his government, after the failure of finding a common ground between all parties.

Draghi had assumed the presidency of the “national unity” government in early 2021, whose mission was to address the pandemic and the economic crisis that resulted from it. However, on July 14, he submitted his resignation to Mattarella, who instantly rejected it.

Fitch Ratings, the credit rating agency considers the situation in Italy reflects major political uncertainty, which makes it more difficult to implement structural and financial forms.