Italian Prime Minister Mario Draghi resigned on July 21. During this period, his government will continue to serve as a caretaker. If the President approves, a decision on the Prime Minister’s re-election is expected within 70 days.

According to a statement from the President’s office, Draghi resigned from Italian President Sergio Mattarella on July 21. Reuters noted that the statement was unclear if Parliament would be dissolved early for elections.

Draghi is a former European Central Bank chief. His government is in a shaky state after three coalition partners withdrew their support on July 20. His resignation could have negative consequences for Europe as a whole, as the continent grapples with a recession and an ongoing energy crisis triggered by the Russian-Ukrainian war.

Earlier reports said Draghi was expected to resign after the coalition collapsed in a confidence vote. Speculation could call for snap elections in October.

Notably, Draghi also offered to resign last week after coalition partners failed to back him in a confidence vote on the cost of the living measure, but Mattarella declined. Instead, Draghi has been asked to seek broad approval from the coalition ahead of Parliament to retain his seat until the end of the legislature scheduled for 2023.

• The 5 index signals smart traders watch before placing a single order
• Kwality Pharma Hits 52-Week High After Record FY26 Revenue
• Jay Bharat Maruti Hits 20% Upper Circuit on 287% Profit Surge
• ZEEL Falls 6% After Q4 Swings to Net Loss on Ad Revenue Miss
• Overnight Stock Market Movements: Key Developments 

Draghi lost 5-star Forza and League support in his league. Opinion polls suggest that conservative blocs, including the far-right Italian brothers, will likely win the vote.