Italy PM Mario Draghi resigns

Italian Premier Mario Draghi resigned Thursday after key coalition allies boycotted a confidence vote, signaling the likelihood of early elections and a renewed period of uncertainty for Italy and Europe at a critical time.

Draghi tendered his resignation to President Sergio Mattarella during a morning meeting at the Quirinale Palace. Mattarella’s office said the president had “taken note” of the resignation and asked Draghi’s government to remain on in a caretaker fashion.

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Draghi’s government imploded Thursday after members of his uneasy coalition of right, left and populists rebuffed his appeal to band back together to finish the legislature’s natural term and ensure implementation of the European Union-funded pandemic recovery program.

Instead, the center-right parties of Forza Italia and the League and the populist 5-Star Movement boycotted a confidence vote in the Senate, in a clear sign they were done with Draghi’s 17-month government.

“Thank you for all the work done together in this period,” Draghi told the lower Chamber of Deputies before he went to see Mattarella. Clearly moved by the applause, he repeated a quip that even central bank chiefs have hearts.

Italian newspapers on Thursday were united in their outrage at the surreal outcome, given Italy is dealing with soaring inflation and energy costs, Russia’s war against Ukraine and outstanding reforms needed to clinch the remainder of the EU’s 200 billion euros in recovery funds.

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“Shame,” headlined La Stampa on the front page. “Italy Betrayed,” said La Repubblica. “Farewell to Draghi’s Government,” said Corriere della Sera.

While the next steps were unclear, the outcome suggested Mattarella could dissolve Parliament after a period of consultations, paving the way for an early election as soon as late September or early October. The legislature’s five-year term had been due to expire in 2023.