Italian Prime Minister Mario Draghi has resigned as expected after failing to restore unity among coalition parties.
President Sergio Mattarella has asked him to continue to lead the government on an outgoing basis.
Draghi’s first attempt to step down was stopped by Mattarella last week. According to observers, it is likely that Mattarella will dissolve parliament and call elections.
That would mean Italians have to go to the polls in the fall for the first time since World War II. The budget is usually drawn up during this period.