European markets brace for fallout as Italian PM suffers referendum defeat

Euro falls to 20-month low

clock • 5 min read

The euro fell to levels last seen in March 2015 last night as Italian Prime Minister Matteo Renzi said he would resign after suffering a worse defeat than expected in the country's referendum on constitutional reform.

With most ballots counted in Sunday's referendum, Italy voted by 60% to 40% to reject  Renzi's (pictured) proposals to greatly reduce the power of the Italian Senate in order to simplify and speed up the process of passing laws. This was a wider margin than expected for the 'no' vote, with the turnout also high at around 70%.  In a late-night news conference, Prime Minister Renzi said he took responsibility for the outcome, and said the 'no' camp must now make clear proposals. The result will be seen as a further victory for populist parties in 2016 following the UK's vote to leave th...

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