Italian Prime Minister Matteo Renzi confirmed on Sunday that he will resign after Italians voted “No” in their constitution reform election.
According to Italian newspaper La Stampa, the “No” side gained 59.62 percent compared to 40.38 percent for the “Yes” side in a high vote turnout.
Prime Minister Renzi led efforts behind the “Yes” campaign to reform Italy’s constitution and said on Sunday that he took full responsibility for the defeat.
The euro has fallen to a 20 month low following the referendum result and the resignation of PM Renzi.
Italy’s President Sergio Mattarella has to decide whether to accept Renzi’s resignation and how to form Italy’s next government.
The Financial Times reported that 8 Italian banks are at risk of failing if the “No” vote wins because it would “deter investors from recapitalizing” these banks.
The eight institutions at risk of failing are Monte dei Paschi di Siena, Popolare di Vicenza, Carige, Banca Etruria, CariChieti, Banca delle Marche, and CariFerrara.
The victory for the “No” side could impact Italy’s credit rating and embolden other populist euro-skeptic movements in Italy as well as other countries such as France and Germany that hold elections in 2017.
The populist and euro-skeptic Five Star Movement led by Italian comedian Beppe Grillo said it is poised to govern Italy now that Matteo Renzi has resigned.
Five Star Movement and the populist far right political party Northern League has called for early elections before Italy’s next general election in February 2018.
On Sunday, Northern League leader Matteo Salvini tweeted his praise for Donald Trump, France’s far right leader Marine Le Pen, and Russian President Putin.
Viva Trump, viva Putin, viva la Le Pen e viva la Lega! https://t.co/r8FXztp9Am
— Matteo Salvini (@matteosalvinimi) December 4, 2016