Referendum 'no' vote could trigger crisis in Italy
Significance Renzi's government will fight two existential battles in the coming weeks: winning the constitutional reform referendum on December 4, and obtaining from the Commission the necessary fiscal flexibility to implement the 2017 budget and avoid an excessive deficit procedure. Impacts A resignation by Renzi would probably lead to political chaos as there is no obvious alternative to him. Renzi's PD is divided over the proposed constitutional reforms and may split in case of a 'no' vote in the referendum. Forming a national unity or technocratic government in case of a 'no' vote may be impossible owing to M5S's unwillingness to compromise. The centre-right is fragmented and no political leader is emerging to fill the void left by former Prime Minister Silvio Berlusconi.