FIRST AIRED: December 5, 2016

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Transcript

00:00:00
>> Italy's Matteo Renzi agreeing to delay his resignation. At a Monday night meeting, President Sergio Mattarella asking the Prime Minister to put his plans on hold, waiting until Parliament approves its 2017 budget, which could be done as early as Friday. Renzi standing down after a crushing defeat, and then political turmoil and a tanking currency.
00:00:23
He wanted backing for changes to Italy's government and lawmaking. Instead, he suffered a heavy 20 point loss in a referendum that deals a big blow to the EU. Reuter's 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.
00:00:42
Italy's Head of State, President Sergio Mattarella, must ask a candidate. Names, including members of Renzi's own party, have been floated. Possibly a safe pair of hands like Economy Minister Pierre 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.
00:01:11
After Brexit and the election of Donald Trump, many 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.
00:01:32
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 have promised a referendum on ditching the euro. A prospect that's sending shivers through currency markets, the euro now hitting 20 month lows as instability in Europe's third largest economy threatens to rekindle a dormant financial crisis.