A new government to form in the wake of Prime Minister Renzi’s resignation

What Happens After Italy’s Matteo Renzi Quits? from Wall Street Journal

Embattled Prime Minister Matteo Renzi was asked to remain in office until a budget is passed by parliament. Prime Minister Renzi submitted his resignation after the defeat of a much-publicized pleibiscite in which he sought to weaken the influence of the powerful Italian senate. The defeat of the pleibiscite is being watched by European Union observers for its potential to trigger a snap election in the Italian parliament which has rules that favor parties currently holding large majorities. The anti-EU Five Star Party is polling well and is believed to be a frontrunner in any ensuing elections. Italian President Sergio Mattarella will lead the formation of a temporary government that may need to pass electoral reforms before elections can be held. Current Finance Minister Pier Carlo Padoan is a potential candidate for the premiership along with Transport Minister Graziano Delrio, Culture Minister Dario Franceschini and Senate Speaker Pietro Grasso. The defeat of the pleibiscite also means many of the former Prime Minister’s reforms will be placed on hold, such as pledged tax cuts, more state investment, and steps to tackle corruption and make the state sector more efficient.

[Bloomberg]