Italy rejects reforms

In a referendum in early December, Italians rejected Prime Minister Matteo Renzi’s proposed constitutional reforms which were intended to streamline governance and legislative arrangements. Mr Renzi sold the changes as necessary to breaking down vested interests weighing heavily on the economy. Reasons for the “no” vote varied—from being a vote against Mr Renzi to rejection of the reforms themselves as concentrating too much power in too few hands.  Following the vote, Mr Renzi resigned and his Foreign Minister Paolo Gentiloni was appointed Prime Minister. Economic, financial and political reactions to the vote have so far been contained.