Italian President Sergio Mattarella asked Prime Minister Matteo Renzi on Monday to delay his resignation until Parliament passes the budget, which is expected to be approved within days.
Renzi said on Sunday he would resign after suffering a humiliating defeat in a referendum over his plan to reform the constitution, throwing the country and the euro zone into confusion. He said voters had shown a "clear" rejection of legislative reform measures and that he would meet with his cabinet on Monday and then hand in his resignation to the President Mattarella, taking full responsibility for the defeat.
"The experience of my government ends here," Renzi said in a televised address to the nation as results showed his 'Yes' camp was well on track to lose the referendum.
What was originally a rather dry referendum on constitutional change has turned into a high-stakes game with the political and economic stability of Italy—and ultimately the euro zone—at risk.
Sunday's vote was on whether the country's second chamber should be stripped of some of its powers. The country's government is hamstrung by procedure and delays to legislation. A "Yes" vote in the referendum would have meant that laws would only need the approval of the lower house to be passed.
Renzi had pinned his political future on the vote, saying he would resign if a "Yes" vote is rejected.
Populist parties such as the 5-Star Movement had campaigned for a "No" vote, saying the change to the constitution would lead to a concentration of power.