Italian anti-establishment politicians rejoice as European leaders worry resignation of Matteo Renzi will embolden populists across continent.
Italian Prime Minister Matteo Renzi stated his intention to resign on Monday after suffering a crushing defeat on Sunday in a referendum to change the constitution.
President Sergio Mattarella has asked him to stay in office until lawmakers can negotiate a new government and the 2017 state budget is passed on Friday.
Renzi's defeat adds to a wave of victories for populist politicians across Europe and fuels fears of future political instability in Italy.
Sarah Morice reports: