Italian PM Mario Draghi's resignation rejected by president as coalition falls apart

Italy's president has rebuffed Prime Minister Mario Draghi's offer to resign after a key coalition ally refused to back the government in a bill to help Italians pay soaring energy bills.

Mr Draghi, the former head of the European Central Bank, has been at the helm of a unity government since February 2021, with his main goal then to lead Italy out of the pandemic and restart its economy.

But on Thursday, Mr Draghi said he will resign after the Five Star Movement, a key party in his broad coalition, withdrew its support in a confidence vote.

The Five Star Movement, led by the former prime minister Giuseppe Conte, had wanted him to do more to support households struggling with high inflation, even if this meant stepping up borrowing.

"The national unity coalition that backed this government no longer exists," Mr Draghi said in a statement on Thursday.

The presidential office, however, said later in the evening that President Sergio Mattarella “didn't accept the resignation and invited the premier to go to parliament” to find support for his national unity government.

He has told Mr Draghi to address parliament to get a clearer picture of the political situation and see if he can still command a majority.

Mr Draghi, who was appointed by the president to lead Italy's post-Covid pandemic, could speak to parliament next week, likely on Wednesday, according to reports broadcast on state television.

If the former European Central Bank chief can't get enough support to carry out his economic reforms, Mr Mattarella could pull the plug on parliament, setting the stage for an early election as soon as late September.

As of now, parliament’s term expires in spring 2023.

Mr Draghi said he had made clear when he took office that his government “would only have gone forward if there was the clear prospective to be able to realise the government program” that was the basis of the governing coalition. "That compactness has been fundamental to face the challenges of these months. These conditions don't exist any more,'' the premier added.

Italy now faces a potential political crisis, which could hamper its attempts to tackle a looming energy crisis and secure crucial EU funding.

Five Star, which has lost around half its support since emerging as the largest party in the 2018 general elections, has seen a string of defections amid dwindling support.

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