In Italy Senate to vote on budget Wednesday

Rome Italian President Sergio Mattarella has thwarted Prime Minister Matteo Renzi’s plan to quickly resign by telling him to keep doing his job until Parliament sorts out the nation’s budget for next year.

SINGAPORE, Dec 6 The euro steadied on Tuesday, having bounced back from a near 21-month low set the previous day after Italian Prime Minister Matteo Renzi’s loss in a referendum over constitutional reform, an outcome that traders had widely expected.

Italian opposition leaders say if exit polls are confirmed, the constitutional reforms referendum backed by Premier Matteo Renzi has failed, and are demanding that he resign.

Sunday’s vote was on whether the country’s second chamber should be stripped of some of its powers. The changes would also abolish at costly government policy agency in Rome.

After staking his political reputation on a controversial referendum, the prime minister has acknowledged defeat and tendered his resignation. The size of the “No” vote at 59.1 percent, was more emphatic than many had forecast. It is the latest sign of the increasing influence of populism in global politics, following the success of the Brexit campaign in the UK, Donald Trump’s victory in the USA and the rise of Marine Le Pen’s National Front in France.

A rejection of the ballot measure may send Italy into a period of political and economic uncertainty that could reverberate across the EU.

But political leaders from almost all stripes are aiming to hold elections as soon as they overhaul Italy’s current electoral law. Most of the rest of the top five most popular parties all criticize the trade bloc, he noted.

The real priority in Italy now, after having three “non-elected” Prime ministers, is to produce a serious electoral law that will enable an election of a victor who will be able to form the government.

Renzi has argued that the reforms dismantle bureaucracy and will make Italy more attractive to investors and help his drive to transform the country.

The party fervently opposes the European Union and is renowned for its very conservative and nationalist views on immigration and globalization.

In a speech to a meeting of the Democratic Party leadership just before he resigned Wednesday, Renzi took responsibility for his political debacle. But Fico, as have both other opposition leaders and leaders from Renzi’s Democrats, also cited the need for Parliament to approve a new election law before the national contests are called.

The Economist expects a banking crisis to be averted but said, “The main risk stems from the banking sector, particularly the rescue of Monte dei Paschi di Siena (MPS), which could render capital increases at several smaller banks impracticable if it fails”.