Italian prime minister Romano Prodi has resigned after losing a key parliamentary vote on Italy's continued military presence in Afghanistan.
Prodi handed in his resignation to president Giorgio Napolitano on Wednesday evening, following the defection of a number of leftist senators from his government coalition that brought down a vote in the senate on extending Italy’s military mission in Afghanistan.
The outgoing prime minister said he would return to the job, should the members of the coalition commit to endorsing his leadership
President Napolitano is set to hold consultations on Thursday with the leaders of the two chambers and the heads of the political parties to try to find a compromise.
Observers say Prodi could return to office to lead a reformed cabinet within weeks, but he would have to sack the foreign affairs minister Massimo D’Alema.
Other scenarios under study include forming a centre-left or a centrist government without the former commission president, or to call a snap general election.
The Italian stock exchange brushed off the shock vote this morning, signalling that investors expect a quick solution will be found.
The European commission’s chief spokesman played down the issue, saying the EU executive expects Italy to keep up to its EU commitments at the upcoming spring summit in March.
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