After losing the referendum, Italian Prime Minister announced his resignation.

(Baonghean.vn) - On December 5, center-left Prime Minister Matteo Renzi announced that he would resign after admitting a "very clear" defeat in a referendum on constitutional reform in the country.

Italian Prime Minister announced his resignation. Photo: AFP.

“Tomorrow the President of the Italian Republic will meet with me and I will submit my resignation,” Mr Renzi told supporters. “I take full responsibility for this defeat and declare that I lost, not you.”

The referendum failure caused a stir, with nearly 60% of voters choosing to say “no” to the constitutional reform proposal.

On the contrary, it was seen as a victory for nationalist and eurosceptic populist parties, which had campaigned fiercely against Renzi and his promise to stimulate Italy's stagnant economy.

“When you fail, you can’t pretend nothing happened and go to bed,” Renzi said. “My government ends here today.”

News of the Italian Prime Minister's resignation was published on the front pages of many major newspapers. Photo: Guardian.

What's next?

The Italian president will have to decide what to do next. He could cobble together a new government from the current parliament, or call a general election in which the anti-establishment Five Star Movement, led by actor Beppe Grillo, is likely to make a resounding comeback.

The recent referendum also took place amid concerns about a wave of populism spreading rapidly across Europe.

The leader of France's National Front party wrote on Twitter: "Italians have rejected the European Union and Renzi. We must listen to the desire of families for freedom and for protection!"

What about banks?

There are also concerns that the vote could further shake the country's finances, especially given that its banking system is mired in bad debt.

Investors, fearful of political turmoil, may demand much higher interest rates when pouring money into banks in urgent need of money.

Some banks may not be able to pay that price upfront, or may not be able to find other willing backers, leading to the prospect of the bank falling into difficulty and needing a government bailout.

Phu Binh

(According to CNN)