Italy is set to hold a general election this autumn after President Sergio Mattarella formally dissolved parliament.
It comes after Prime Minister Mario Draghi handed in his resignation as a result of key right-wing coalition allies, the Five-Star Movement boycotting a confidence vote.
Draghi, an economist and former president of the European Central Bank, will remain on to lead a caretaker government.
The elections -- due to take place in the next 70 days -- will be the second in Italy in four years.
"The government has tendered its resignation [...] I thanked Mario Draghi and the ministers for their commitment over these 18 months," Mattarella said on Thursday.
"The government is encountering limitations in its activities, but it has the tools to operate in these months before the new executive arrives."
"There are many tasks to be completed in the interest of Italy," he added.
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