Video: Italy's Prime Minister Matteo Renzi says he will resign following referendum defeat

Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on Sunday in a referendum over his proposals for constitutional reform. Deborah Lutterbeck reports. </s> Italians voted yesterday overwhelmingly to elect Matteo Renzi as the new head of the ruling Democratic Party, returning him to frontline politics as the party faces a growing challenge from populist politicians.

"It is a clear, ample victory that went beyond our expectations," said agriculture minister Maurizio Martina, who has been campaigning for Mr Renzi. "This is the opening of a new phase."

Voters queued at tents, bars and local party headquarters across the country to choose between Andrea Orlando, the justice minister, Michele Emiliano, governor of the southern Puglia region, and Mr Renzi, the former prime minister.

Turnout was estimated at between 1.9 to 2 million voters, an "extraordinary" result, said Mr Renzi, 42, who resigned in December after Italians overwhelmingly rejected a national referendum to reform Italy’s constitution.

In remarks on the terrace of the party headquarters, Mr Renzi said the primary victory - estimated to be well over 60 percent - marked the "turning of a new page" for the party, and possibly the future of Europe. </s> Italy's Prime Minister Matteo Renzi gives a press conference at the Palazzo Chigi on December 4, 2016 in Rome (AFP Photo/Andreas SOLARO)

Rome (AFP) - Italian Prime Minister Matteo Renzi announced his resignation on Monday, hours after it was confirmed he had suffered a crushing defeat in a referendum on constitutional reform.

"My experience of government finishes here," Renzi told a press conference, acknowledging that the No campaign had won an "extraordinarily clear" victory in a vote on which he had staked his future.

Interior Ministry projections suggested the No camp, led by the populist Five Star Movement, had carried the vote by a margin of almost 60-40 with a near 70 percent turnout underlining the high stakes and the intensity of the debate.

Markets seemed to take Renzi's departure in their stride. Stocks and the euro fell in early trading in Asia but there were no signs of panic with the possibility of his resignation having already been largely factored in.

Renzi said he would be visiting President Sergio Mattarella on Monday to hand in his resignation following a final meeting of his cabinet.

Mattarella will then be charged with brokering the appointment of a new government or, if he can't do that, ordering early elections.

Five Star founder and leader Beppe Grillo called for an election to be called "within a week" on the basis of a recently adopted electoral law which is designed to ensure the leading party has a parliamentary majority - a position Five Star could well find themselves in at the next election.

"Democracy was the winner," Grillo wrote in a post-vote blog that marked a significant change in the party's position on the electoral law. Prior to the referendum, Five Star had been arguing for it to be revised.

Most analysts see early elections as unlikely with the most probable scenario involving Renzi's administration being replaced by a caretaker one dominated by his Democratic Party which will carry on until an election due to take place by the spring of 2018.

Finance Minister Pier Carlo Padoan is the favourite to succeed Renzi as prime minister and the outgoing leader may stay on as head of his party - which would leave him well-placed for a potential comeback to frontline politics at the next election, whenever it is.

On the day Austria's voters rejected a far-right candidate for president, the scale of the No victory in Italy was even bigger than opinion polls had been indicating up until November 18, after which the media were banned from publishing survey results.

Renzi had gone into the final weekend of the campaign insisting he could still win voters around but he acknowledged he had failed. "The Italian people spoke today in unequivocal fashion," he said.

Opposition parties had denounced the proposed amendments to the 68-year-old constitution as dangerous for democracy because they would have removed important checks and balances on executive power.

Spearheaded by Five Star, the biggest rival to Renzi's Democratic party, the "No" campaign also capitalised on Renzi's declining popularity, a sluggish economy and the problems caused by tens of thousands of migrants arriving in Italy from Africa.

Renzi's backers believed they were voting for overdue change.

Outside a polling station in Rome, business owner Raffaele Pasquini, 37, told AFP he had voted "Yes" in the interest of his two-year-old son.

"We are voting to try and change a country that has been stalled for far too long," he said.

After the Brexit vote and Donald Trump's victory in the US presidential election, the No vote is likely to be interpreted as another victory for populist forces and a potential stepping stone to government for Grillo's Five Star.

But the campaign was not just about popular discontent with the state of Italy. Many Italians of a similar political bent to Renzi had deep reservations about the proposed changes to the constitution.

Under the proposals, the second-chamber Senate, currently a body of 315 directly-elected and five lifetime lawmakers, would have been reduced to only 100 members, mostly nominated by the regions.

The chamber would also have been stripped of most of its powers to block and revise legislation, and to unseat governments. </s> Italy was plunged into political and economic uncertainty following voters' resounding rebuke of Premier Matteo Renzi's proposed constitutional reforms.

Renzi announced he would quit following Sunday's referendum vote, in which 60 percent of voters rejected his reforms and signaled they wanted a change in political direction. Renzi is expected to hand in his resignation to President Sergio Mattarella later Monday.

The Milan Stock Exchange opened down 2 percent, but many bank shares were suspended due to excessive volatility meaning the hit could be even deeper.

The results hit Italy's sovereign debt, increasing the spread on Italy's 10-year bonds to 2 percent, from 1.7 percent on Dec. 1 and a record low of just over 1 percent last March and April. </s> Renzi had previously resigned as prime minister in December after voters rejected a referendum— Reuters picROME, April 30 — Former Italian prime minister Matteo Renzi was today poised to win the leadership of Italy’s ruling Democratic Party (PD) in a primary election, propelling him back to the forefront of the national political scene.

Renzi, 42, resigned as prime minister in December after Italians overwhelmingly rejected a constitutional referendum.

A centrepiece of his political platform, the reform had aimed to streamline Italy’s parliamentary system.

In the aftermath of the December vote defeat and facing a rebellion from the left wing of his centre-left party, Renzi in February stepped down as party leader with the aim of regaining legitimacy in a future vote.

On Sunday he was up against two candidates considered further to the left: Justice Minister Andrea Orlando and Michele Emiliano, who heads the southern Puglia region.

An internal vote conducted by the party earlier this month suggested a clear Renzi victory after he scored 66.7 per cent, with 25.3 per cent for Orlando and eight per cent for Emiliano.

When he first took over the leadership in December 2013, Renzi won the backing of close on 68 per cent of 2.8 million voters.

Similar figures would underpin the winner’s legitimacy—but Emiliano warned the election will be a flop if less people vote this time, while Orlando said that less than two million cast ballots would signal a failure.

Renzi set the bar much lower—at one million.

Voting booths, mainly stands on the streets, opened at 8:00 am (0600 GMT) and were to close at 8:00 pm (1800 GMT).

By midday organisers said more than 701,000 people had turned out—down on 900,000 at the same stage in 2013 but more than many observers had forecast.

The vote was open to all Italians over 16 years old, EU citizens residing in Italy and non-EU foreigners with valid residency permits—on condition of paying a donation of at least two euros.

Crowning of Renzi -Lorenzo De Sio, a professor of political sociology at the Luiss University in Rome said the turnout would be crucial in determining Renzi’s legitimacy.

“Rather than a competition, we’re looking at a process of legitimisation, a sort of crowning of Renzi as leader of the PD. We can expect a huge Renzi victory but with weak voter turnout. People on the left do not seem to be mobilised,” he says.

“If participation rates are around a million people or less, Renzi’s legitimisation won’t be strong, if it is between 1.5 and two million, he will wind up in a stronger position,” he adds.

The winner of the vote will lead the party during legislative elections slated for spring 2018 unless parliamentarians come to an agreement on electoral reform before then and call for early elections.

During the only televised debate between Renzi and his two competitors, the former prime minister said he would do “everything to bring back energy, momentum and vigour to the country”, and railed against “stagnation that seems to be blocking political and institutional life” since the referendum.

In addition to the contrasting styles, with Orlando and Emiliano generally more reserved than the exuberant Renzi, the debate laid bare key differences over national politics.

Renzi disagrees with his two challengers on a wealth tax, which he opposes.

If the spring election outcome requires the formation of a coalition following the legislative elections, Orlando and Emiliano have said they would seek to govern with left wing defectors or other parties on the left.

Renzi, meanwhile, has not ruled out forming an alliance with centre-right leader and former premier Silvio Berlusconi. — AFP </s> (CNN) Matteo Renzi will offer his resignation as Italian Prime Minister in Rome Monday after suffering a crushing referendum defeat which could transform the country's political and economic landscape.

The 41-year-old, who was appointed to office in 2014, will meet with President Sergio Mattarella, hours after close to 60% of voters rejected his plans for constitutional reform.

As the result reverberated around the country and the continent, the euro fell to a 20 month low against the dollar and dragged Italy towards more financial pain.

The prospect of instability in the eurozone's third biggest economy saw the currency drop some 1% against the dollar to around $1.05 in Asia trade, its lowest level in 20 months. It trimmed those losses later in the day.

The decisive outcome, with a 70% turnout, is considered a notable victory for eurosceptic populist and nationalist parties which campaigned heavily against Renzi and his promise to stimulate Italy's sluggish economy.

Italy's path will become clearer as the week progresses but Renzi's promise to resign brings with it yet more uncertainty.

He may yet be asked to stay on in office by the President until parliament passes a budget bill which is due later this month.

There is also the possibility that a caretaker administration could be appointed to keep the country running until the 2018 elections.

That could see the likes of finance minister Pier Carlo Padoan take over as Prime Minister or even Pietro Grasso, the Senate leader.

And while unlikely, there is also a scenario in which parliament is dissolved and a snap election is called.

As Europe awoke to the result, leading figures began to react to the latest installment of political change.

A statement from the Elysee Palace said that Hollande shared Renzi's will to "steer Europe to growth and employment."

In Brussels, European Commissioner for economic and financial affairs Pierre Moscovici said he remained convinced the Italian authorities would deal with the situation.

"Italy is a strong country, a reliable country," he said before adding he did not expect there to be an economic crisis.

He also insisted the the result was not an anti-Europe or an anti-EU vote.

German Finance Minister Wolfgang Schäuble added that he expected Italy to "make the best of it" while president of the Eurogroup Jeroen Dijsselbloem rejected accusations that the result would radically affect the economic situation within the country.

What was it all about?

At its core, this vote was a referendum on whether or not Italy should amend its 1948 constitution.

Renzi wanted to reduce the power of the Senato, the upper chamber of the Italian Parliament, by slashing its numbers from 315 to 100 -- making it more of a consultative assembly.

Proponents of the referendum said that the goal was to make the job of governing Italy less complicated and reforms would help revive the nation's lethargic economy.

However, critics claimed the reforms would impact the constitution's checks and balances and give the Prime minister too much power.

"It was shifting power from the regions to the center in a really unbalanced way," she said. "It was a dangerous reform for the roots of our democratic system."

This, according to Schlein, was Renzi's "completely unnecessary" mistake. She said that personalizing and dramatizing the vote meant that many of the people who voted "No" -- particularly the younger voters -- did so for political reasons beyond the text of the reform and its consequences.

"The vote was transformed into a vote on himself and his government," she said.

In Rome, there were a range of emotions ranging from elation to huge disappointment.

"I believe this was a lost opportunity for our country," Lino Settola, director of a private company, told CNN.

"What interested me was speeding up the process of passing laws and not continuing the ping pong between the House of Representatives and Senate, waiting years before things happen.

"This referendum would have helped speed this process up."

Giuseppe Cazuolo, a photographer from Rome, was equally concerned by the result.

"What will happen is that the people who have governed Italy will return but nothing will happen," he said.

"It's too soon to say who will take power. but everything is in the hands of the President of the Republic now.

"I have faith in him, he is a person that Italians love because you can see he is a professional person.

Another voter, Alex, said that Renzi's mistake was making the referendum too political.

He also cited a frustration with Brussels and being governed by EU law as another area which caused political angst.

"I voted no, but I think people want a real change," Alex told CNN.

"They don't want just a political change, but a change where things really happen.

"I think the referendum was too political and Renzi made an error." </s> Matteo Renzi, staging a political comeback less than five months after resigning as Italy's prime minister, easily regained the leadership of the ruling Democratic Party (PD) on Sunday with an overwhelming victory in a primary election among party supporters.

ROME: Matteo Renzi, staging a political comeback less than five months after resigning as Italy's prime minister, easily regained the leadership of the ruling Democratic Party (PD) on Sunday with an overwhelming victory in a primary election among party supporters.

According to partial results, Renzi had about 72 percent of the vote, held in makeshift polling booths around the country. About 2 million party members voted in the primary. Justice Minister Andrea Orlando had 19 percent while Michele Emiliano, the governor of the southern Puglia region, had about 9 percent.

Both of his opponents, as well as Prime Minister Paolo Gentiloni, called to congratulate him, and Renzi gave a long victory speech at party headquarters.

"Forward together," Renzi said to applause.

Renzi, 42, resigned as prime minister in December after a crushing defeat in a referendum over constitutional reforms aimed at streamlining lawmaking. He was replaced by Gentiloni, his foreign minister, but he quickly began planning a comeback.

With a national vote due by May 2018, polls show the ruling PD has slipped behind the anti-establishment 5-Star Movement, which questions the country's euro membership. Renzi's ability to counter the 5-Star surge may be crucial to fending off an existential threat to the euro zone.

However, under Italy's proportional representation voting system, no party currently looks likely to win enough seats in parliament to govern alone.

Renzi, with his confrontational leadership style, has become a divisive figure, and there is no guarantee he would be named prime minister of a future coalition government even if the PD were to win the most votes during the election.

While Renzi remains the most popular politician among PD voters, the party and his own appeal look much weaker than during his heyday as prime minister, after he failed to convert his ambitious reform agenda into reality.

Renzi's current personal approval rating is about half of the 50 percent he posted three years ago, according to the Ixe polling institute.

Polls show 5-Star now has around 30 percent of the vote and a lead of between 3 and 8 percentage points over the PD after a dispute between Renzi's loyalists and left-wing traditionalists caused a party split in February.

"I voted for Renzi because he's got more drive and determination than the others, but I'm not convinced he'll get back into government," said computer engineer Luigi Mancini, a PD supporter in Rimini on the Adriatic coast.

"With the (proportional representation) voting system we've got, it seems unlikely that anyone will get a majority," he added. </s> Former Italian Prime Minister Matteo Renzi was Sunday poised to win the leadership of Italy’s ruling Democratic Party (PD) in a primary election, propelling him back to the forefront of the national political scene.

Renzi, 42, resigned as prime minister in December after Italians overwhelmingly rejected a constitutional referendum.

A centerpiece of his political platform, the reform had aimed to streamline Italy’s parliamentary system.

In the aftermath of the December vote defeat and facing a rebellion from the left wing of his center-left party, Renzi in February stepped down as party leader with the aim of regaining legitimacy in a future vote.

On Sunday he was up against two candidates considered further to the left: Justice Minister Andrea Orlando and Michele Emiliano, who heads the southern Puglia region.

An internal vote conducted by the party earlier in April suggested a clear Renzi victory after he scored 66.7 percent, with 25.3 percent for Orlando and 8 percent for Emiliano.

When he first took over the leadership in December 2013, Renzi won the backing of close on 68 percent of 2.8 million voters.

Similar figures would underpin the winner’s legitimacy — but Emiliano warned the election will be a flop if less people vote this time, while Orlando said that less than 2 million cast ballots will signal a failure.

Renzi set the bar much lower — at 1 million.

Voting booths, mainly stands on the streets, opened at 8 a.m. and were to close at 8 p.m.

The vote was open to all Italians over 16 years old, EU citizens residing in Italy and non-EU foreigners with valid residency permits — on condition of paying a donation of at least €2.

Lorenzo De Sio, a professor of political sociology at the Luiss University in Rome said the turnout will be crucial in determining Renzi’s legitimacy.

“Rather than a competition, we’re looking at a process of legitimization, a sort of crowning of Renzi as leader of the PD. We can expect a huge Renzi victory but with weak voter turnout. People on the left do not seem to be mobilized,” he says.

“If participation rates are around a million people or less, Renzi’s legitimization won’t be strong, if it is between 1.5 and 2 million, he will wind up in a stronger position,” he adds.

The winner of the vote will lead the party during legislative elections slated for spring 2018 unless parliamentarians come to an agreement on electoral reform before then and call for early elections. </s> Italian Premier Matteo Renzi speaks during a press conference at the premier's office Chigi Palace in Rome, early Monday, Dec. 5, 2016. Renzi acknowledged defeat in a constitutional referendum and announced he would resign on Monday. Italians voted Sunday in a referendum on constitutional reforms that Premier Matteo Renzi has staked his political future on. (AP Photo/Gregorio Borgia)

ROME (Reuters) - Italian Prime Minister Matteo Renzi vowed to resign after suffering a crushing defeat on Sunday in a referendum on constitutional reform, tipping the euro zone's third-largest economy into political turmoil.

His decision to quit after just two and a half years in office deals a blow to the European Union, already reeling from multiple crises and struggling to overcome anti-establishment forces that have battered the Western world this year.

The euro fell to 20-month lows against the dollar, with markets worried that instability in the euro zone's third largest economy could reignite a dormant financial crisis and deal a hammer blow to Italy's fragile banking sector.

Renzi's resignation could open the door to early elections next year and to the possibility of an anti-euro party, the opposition 5-Star Movement, gaining power in the heart of the single currency. 5-Star campaigned hard for a 'No' vote.

"I take full responsibility for the defeat," Renzi said in a televised address to the nation, saying he would hand in his formal resignation to President Sergio Mattarella on Monday.

Mattarella will have to embark on a round of consultations with party leaders before naming a new prime minister -- Italy's fifth in as many years -- who will be tasked with drawing up a new electoral law.

Early projections said Renzi managed to win little more than 40 percent of the vote on Sunday following months of bitter campaigning that pitted him against all major opposition parties, including the anti-system 5-Star Movement.

Italy's parties will now have to work together on the new electoral law, with the 5-Star urging a swift deal to open the way for elections in early 2017, a year ahead of schedule.

Opinion polls show Renzi's Democratic Party (PD) is neck-and-neck with the 5-Star, which has called for a referendum on Italy's membership of the euro currency.

Renzi, 41, took office 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 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.

In one relief for mainstream Europe, Austrian voters roundly rejected on Sunday a candidate vying to become the first freely elected far-right head of state in Europe since World War Two, choosing instead a Greens leader as president.

The biggest immediate loser from the 'No' triumph in Italy 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 euros ($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.

Economy Minister Pier Carlo Padoan, seen as a possible candidate to replace Renzi, 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 Nov. 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 percent.

The risk to stability, meanwhile, is enough to have the European Central Bank preparing to step in if needed.
Following the result of the constitutional referendum, Matteo Renzi will resign from his office as Prime Minister of Italy. With most ballots counted, the "No" vote leads with 60%.