Italy's Prime Minister Mario Draghi (right) tendered his resignation to Italy's President Sergio Mattarella at the Quirinale presidential palace in Rome on Thursday.
Rome, Italy (CNN) Italian
Prime Minister Mario Draghi tendered his resignation to President Sergio Mattarella on Thursday, plunging the European Union's third-largest economy into a new political crisis.
Draghi's resignation comes after several key parties in his coalition -- the powerful 5-Star movement, the largest party in the country's coalition government, the center-right Forza Italia and the far-right League -- boycotted a confidence in the government on Wednesday night.
Mattarella, who has accepted the resignation, is scheduled to meet with parliament speakers on Thursday afternoon, the presidential palace said in a statement.
The next step is to call early elections.
Last week, Draghi first tendered his resignation after the 5-Star movement withdrew its support in a parliamentary confidence vote on a package designed to tackle Italy's cost-of-living crisis.
Draghi had previously said that he would not lead a government that did not include the 5-Star.
That resignation, however, was rejected by President Mattarella, who urged him to stay and find a solution.
On Thursday, the FTSEMIB, Italy's main stock market, fell more than 2.5% after the country's government was brought to the brink of collapse.
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CNN's Sharon Braithwaite contributed reporting.
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