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.

• Stocks in Focus: SJVN, Tata Power, Afcons Infrastructure, and Others
• Stocks Under F&O Ban: Adani Enterprises, Aarti Industries, Indraprastha Gas, and Others 
• RBI Defends Currency Moves to Protect Economy
• Trump 2.0: Drilling, Climate Rollbacks, and Global Energy Concerns
• Nvidia’s AI Chip Demand Soars, But Slowing Sales Growth Worries Investors

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.