FIRST AIRED: December 5, 2016

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Transcript

00:00:00
>> Political turmoil, a tanking currency, and a prime minister stepping down after a crushing defeat. Italians waking up to a chaotic picture on Monday morning. Matteo Renzi promising to resign, following a heavy loss in a referendum that deals a big blow to the EU.>>
FOREIGN]
> I lost, and I say it loud and clear, even if I have a lump in my throat.
00:00:23
>> He wanted backing for changes intended to streamline government and speed up lawmaking. Reuters, Isla Binnie, in Rome says, Italy must now get on with recruiting a new leader.>> At this point, it's up in the air who could replace Renzi. Italy's Head of State, President Sergio Mattarella must ask a candidate.
00:00:43
Names including members of Renzi's own party have been floated. Possibly a safe pair of hands like Economy Minister, Pier Carlo Padoan, or an institutional figure like the Head of the Senate, Pietro Grasso.>> Early elections next year, now a very real possibility, as the country picks its fifth PM in as many years.
00:01:05
After Brexit and the election of Donald Trump, many people see the same populist, anti-establishment forces behind Renzi's rejection. Now waiting in the wings, the far-right Five Star Movement.>> The Five Star Movement is currently, more or less, neck and neck with Renzi's Democratic Party, in the polls, so there would seem to be a lot of popular support for them.
00:01:26
It will come down to how the electoral law is actually played out, and how much the opposition parties will want to keep Five Star out of power.>> If they were to make it into power, they've promised a referendum on ditching the euro, a prospect that's sending shivers through currency markets.
00:01:44
The euro now hitting 20-month lows, as instability in Europe's third-largest economy threatens to rekindle a dormant financial crisis.