Rome (CNN)Italian Prime Minister Mario Draghi said Thursday that he would resign, after the 5-Star movement -- the largest party in the country's coalition government -- withdrew its support in a parliamentary confidence vote.
Draghi's measures -- a package designed to tackle Italy's cost-of-living crisis -- passed by 172 to 39. However, the 5-Star boycott leaves the government at real risk of collapse and could lead to an early election.
After winning the vote but losing 5-Star's support, Draghi said in a statement: "I want to announce that this evening I will present my resignation to the President of the Republic."
"Today's votes in Parliament are very significant from a political point of view. The majority of national unity that has supported this government since its creation is no longer there," he added.
He had previously said that he would not lead a government that did not include 5-Star.
However, Italy's President, Sergio Mattarella, has rejected Draghi's resignation, instead asking Draghi to address the parliament in order to assess the political situation, the Italian Presidency said in a statement.
"The President of the Republic did not accept the resignation and invited the Prime Minister to appear before Parliament to make communications, so that an assessment of the situation that has arisen as a result of the outcome of the session held today in the Senate of the Republic could be carried out in its proper forum," the statement said.
'Madness'
The populist 5-Star movement objected to Draghi's cost-of-living package on the grounds it didn't go far enough, after threatening to withdraw its support for a long time.
A major sticking point was also the financing of a garbage incinerator in Rome, which angered the 5-Star movement.
"We are opposed to this decree in the term of method and substance, in particular regarding the incinerator. It's madness," said Maria Domenica Castellone, leader of the 5-Star movement in the senate, during a debate on Thursday.
Draghi was appointed Prime Minister if Italy in 2021 to help the country recover from the Covid-19 crisis. He was seen as a safe pair of hands that would be able to responsibly use the European Union's Covid recovery funds. Draghi had previously served as President of the European Central Bank from 2011 to 2019.
Upon taking the job, he appointed a cabinet comprising of people from a wide range of Italy's political parties.
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Italy's President Mattarella rejects Prime Minister Draghi's resignation - CNN
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