Italian senate passes 2017 budget, clearing way for Renzi's resignation

The Italian Upper House gave its final approval to the 2017 budget law on Wednesday, clearing the way for the announced resignation of Prime Minister Matteo Renzi.

The senate passed the bill with 166 votes in favor, 70 votes against, and 1 abstention. The budget is worth 26.5 billion euros (28.4 billion U.S. dollars).

Before the final voting, Renzi's cabinet had called a confidence vote on the provision, which it won with 173 votes in favor and 108 against.

Renzi announced his resignation on Monday after suffering a defeat in a referendum on a cabinet-backed constitutional reform held on Sunday.

Italian President Sergio Mattarella, however, asked Renzi to leave his office only after the budget law was approved by parliament.

Renzi was now expected to formally hand in his resignation later on Wednesday.

Renzi's center-left Democratic Party (PD), which holds the majority of the seats in parliament, was in fact to gather its leadership on Wednesday afternoon in order to outline its political position.

The outgoing prime minister would address the meeting, and was expected to advocate a request of early elections, or a large "government of national responsibility" including all major political forces.

Once Renzi's resignation becomes formal, Mattarella will launch a round of political consultations with all party leaders in order to appoint a new prime minister.

Economy Minister Pier Carlo Padoan, and President of the Senate Pietro Grasso, were both seen as possible candidates for the post.

Some opposition forces have also called for immediate elections, but the option appears very unlikely, since the current electoral law needs to be changed, or at least amended, before going to the polls.

Mattarella was also much against early elections, according to local media. Endit