Italy to Hold Elections in 2018

Italians will vote in new general elections in 2018 no matter how a referendum on constitutional reform turns out later this year, Italian Prime Minister Matteo Renzi announced.

Renzi, who came to power two years ago by ousting grand coalition-leader Enrico Letta, has staked his political future on winning the referendum which he says is crucial to more stable and stronger government.

Italian Prime Minister has indicated that he would nonetheless step down from office if he lost the referendum.

The referendum, the date of which has not yet been announced, seeks to do away with a parliamentary system in which the upper and lower houses have equal powers, effectively abolishing the Senate as an elected chamber and sharply reducing its ability to veto legislation.

Critics fear the proposed reform could give excessive powers to the government and its leader.

No government has completed a full term in Italy since World War Two, making it difficult to reform an economy where debt-to-output is second only to Greece in the euro zone.