Summary

  • Italian PM Matteo Renzi offers his resignation after a resounding referendum defeat

  • President Sergio Mattarella asks him to stay on until the 2017 budget is passed by parliament

  • The Italian budget is expected to be voted on within days

  • Markets fell at the start of trading but have since recovered

  • However, the vote risks destabilising Italy's indebted banks, particularly Monte dei Paschi

  1. Live coverage suspendedpublished at 21:09

    We are suspending our live coverage of events following the Italian referendum. We will bring you any further updates as and when they happen.

    For all the latest developments on this and other stories, visit our website.

  2. Passing budget 'would help reassure markets'published at 20:37 Greenwich Mean Time 5 December 2016

    James Reynolds
    BBC News, Rome

    Italy's Prime Minister Matteo Renzi says that he will resign.

    But the country's President Sergio Mattarella has now asked Mr Renzi to stay in office for a short while longer - in order to pass a budget bill which is currently in parliament. 

    That would tie up an important piece of unfinished business - and help to reassure markets that the referendum result hasn't derailed the country's affairs. 

    The government hopes to approve the bill by the end of the week. 

    At that point, if all goes to plan, Mr Renzi would formally step down. 

    President Mattarella may then appoint a successor from Mr Renzi's own Democratic Party to serve out the remaining 14 months of this government's term. 

  3. Uncertainty over timing of Renzi resignationpublished at 20:29 Greenwich Mean Time 5 December 2016

    There appears to be some uncertainty over exactly when Italian Prime Minister Matteo Renzi will resign. 

    The president has asked him to hold off until the 2017 budget is passed in the Senate. 

    That could happen as early as Wednesday, according to some Italian media outlets (such as leading newspaper La Reppublica, external and news website TGcom24, external), though most others are suggesting the vote will be on Friday. 

  4. Presidency gives details on Renzi resignation delaypublished at 19:40 Greenwich Mean Time 5 December 2016

    Italian Prime Minister Matteo Renzi (c) arrives by car at the Quirinale PalaceImage source, EPA
    Image caption,

    Matteo Renzi, centre, was pictured arriving by car at the Quirinale Palace

    The Italian presidency has released a statement , externalgiving details of the meeting between President Sergio Mattarella and Prime Minister Matteo Renzi, which finished a few minutes ago. 

    It says that Mr Renzi told the president that the referendum result meant it was no longer possible for him "to carry out the government's mandate and that he therefore put forward his intention to resign". 

    The statement then confirms that the president requested that Mr Renzi delay his resignation in order to "complete the parliamentary business of approving the budget to prevent the risks of a provisional budget". 

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  5. Italian president asks Renzi to delay standing downpublished at 19:05 Greenwich Mean Time 5 December 2016

    The Italian president has asked Prime Minister Matteo Renzi not to resign until the 2017 budget has been passed by parliament, Reuters news agency reports. 

    It is expected that the budget will be passed within days. 

  6. Renzi finishes meeting presidentpublished at 19:00 Greenwich Mean Time 5 December 2016

    Mr Renzi has left the presidential palace after a half-hour meeting with President Sergio Mattarella and returned to his own official residence, Italian newspaper La Repubblica is reporting, external

  7. Renzi arrives at palace for resignationpublished at 18:23 Greenwich Mean Time 5 December 2016
    Breaking

    Italian Prime Minister Matteo Renzi has arrived at the presidential palace in Rome to formally offer his resignation. 

  8. Kremlin heaps praise on Matteo Renzipublished at 18:13 Greenwich Mean Time 5 December 2016

    The Russian government has praised Mr Renzi as "an advocate of constructive, active dialogue on the highest level". 

    "His role in the development of Russian-Italian relations, even in the hard times in the past few years, is difficult to overestimate," Kremlin spokesman Dmitry Peskov told a news conference in Moscow. 

    Mr Peskov said the referendum was a "purely internal affair for Italy" and Moscow would not comment on the result.

  9. Listen: Mario Monti says referendum result was not about the europublished at 18:07 Greenwich Mean Time 5 December 2016

    The World at One
    BBC Radio 4

    Mario Monti, the former Italian Prime Minister, says he completely disagrees with the idea the result of the Italy's referendum was about the euro.

    He says he knows "so many people who voted no despite being fervent Europeans".

  10. Nativity scene finds place for Renzipublished at 17:42 Greenwich Mean Time 5 December 2016

    Figurine depicting Matteo Renzi in a Nativity scene in San Gregorio Armeno, NaplesImage source, EPA
    Image caption,

    A figurine depicting Matteo Renzi with his bags packed and a placard saying "I've quit" has appeared in a Nativity scene in San Gregorio Armeno, Naples, which is famous for its Christmas displays.

  11. Renzi departure 'may be delayed'published at 17:27 Greenwich Mean Time 5 December 2016

    Italian media is speculating that PM Matteo Renzi's resignation could be put on hold until at least the end of this week to allow the Senate to approve the 2017 budget. 

    Italian news agency Ansa says a similar scenario took place with former prime minister Silvio Berlusconi's outgoing government in late 2011.

    Mr Renzi will meet President Sergio Mattarella after a cabinet meeting at 18:30 local time (17:30 GMT).  

  12. Matteo Renzi's path to resignationpublished at 17:06 Greenwich Mean Time 5 December 2016

    The BBC's correspondent in Rome, James Reynolds, traces the journey Mr Renzi will make to submit his resignation.  

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  13. Italy gets ready for a new PM - againpublished at 16:49 Greenwich Mean Time 5 December 2016

    As Italy gets ready for another change in government, the BBC's James Reynolds in Rome says that the country has changed its prime minister 14 times in the past 25 years.

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  14. Hard to foresee consequences, says EU parliament chiefpublished at 16:39 Greenwich Mean Time 5 December 2016

    European Parliament President Martin Schulz says it is "difficult to foresee the consequences" of Matteo Renzi's referendum defeat and resignation.

    In an interview with the Italian news agency Ansa, he said he hoped President Mattarella could find "a solution to stabilise the country".

    Mr Schulz said the reasons for the "No" campaign victory could be rooted in a debate that was "controversial in all political parties".

    President of the European Parliament Martin SchulzImage source, EPA
  15. Merkel 'sad' after Renzi defeatpublished at 16:25 Greenwich Mean Time 5 December 2016

    German Chancellor Angela Merkel said she was saddened by the referendum result and had supported Matteo Renzi's proposed reforms. 

    Addressing reporters in the city of Essen she said: "I am sad that the referendum in Italy did not turn out as the prime minister wished because I always supported his reform policies but it is of course a domestic Italian decision that we must respect." 

    Earlier, her spokesman Steffen Seibert said Mrs Merkel had "worked very well and with great trust with Matteo Renzi".

    Angela Merkel in Essen, Germany. 5 Dec 2016Image source, AFP
    Image caption,

    Mrs Merkel faces her own challenges at home, with an election next year seen by analysts as unpredictable

  16. Renzi: Resigning, but not going?published at 16:09 Greenwich Mean Time 5 December 2016

    PM Matteo Renzi may stay in power until the Italian Senate passes next year's budget, the BBC's Julian Miglierini in Rome reports.

    He will meet President Sergio Mattarella after a cabinet meeting at 18:30 local time (17:30 GMT).

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  17. Monte dei Paschi: Bankers and investors meetpublished at 15:52 Greenwich Mean Time 5 December 2016

    Simon Jack
    BBC Business Editor

    Bankers and investors behind the €5bn ($5.3bn; £4.1bn) rescue deal for Monte dei Paschi are meeting now to discuss the response to Mr Renzi’s resignation. 

    Sources at Mediobanca - one of the advisers - tell me they are still confident that the deal will proceed. It all hinges on the Qatari Investment Authority which is putting in €1bn. If the Qataris stick with it, it should go ahead for the following reasons.

    Although the political risks have risen, Italian banks’ problems haven’t materially changed.

    Qatar is a very patient investor

    Italy is still one of the world’s biggest economies and they want a stake in one of its biggest banks.

    Right now, MSP shares are down 3% - having been down 5% a couple of hours ago. Likewise, Unicredit shares were down over 5% and are now down 2%.

    I would be surprised if we get any announcement on this today. If this deal did fall apart, the government is in a horrible position.

    Read more from Simon here.

  18. Italy's next PM: The main candidatespublished at 15:30 Greenwich Mean Time 5 December 2016

    Although Finance Minister Pier Carlo Padoan is widely tipped as the favourite to succeed Matteo Renzi as prime minister, other possible contenders include Senate President Pietro Grasso and Transport Minister Graziano Delrio, Reuters news agency reports.

    A decision is expected to be announced later today by President Sergio Mattarella, after a cabinet meeting at 18:30 local time (17:30 GMT). 

  19. Five Star Movement 'able to govern'published at 15:04 Greenwich Mean Time 5 December 2016

    A senator for the opposition Five Star Movement has insisted that the party is capable of forming a government and is not just a party of protest. 

    "We have showed people in our daily work... that we can propose things, that we can propose good laws, that we are involved," Michela Montevecchi told the BBC World Service's Newshour programme. 

    "Some of us are engineers, doctors, architects. You don't have to be a politician to detect people's needs and to [create] good laws."

    The movement's leader, former comedian Beppe Grillo, has called for elections to be held as soon as possible, but this is unlikely to happen.

    A man holds a banner reading "I say no" during a march in support of the "No" vote in the constitutional reform referendum in RomeImage source, Reuters
    Image caption,

    The Five Star Movement, which backed the "No" vote, is riding high in the polls and has called for an early election

  20. Germany's central bank chief fears slowdown in reformspublished at 14:36 Greenwich Mean Time 5 December 2016

    The head of Germany's central bank says the referendum result is "not the end of the world", although a slowdown in the pace of reforms in Italy "is to be feared". 

    Bundesbank chief Jens Weidmann added: "It's now even more important that Italian policymakers send convincing signals that they will tackle economic problems at the root."

    Jens Weidmann, President of Deutsche Bundesbank at European Banking Congress EBC in Frankfurt, on November 18, 2016Image source, AFP