SERGIO Mattarella was re-elected as Italy’s president, offering relief to investors by setting up former European Central Bank head Mario Draghi to remain prime minister.

After almost a week of failed votes to elect an alternative candidate, Italy’s deadlocked parliament turned to Mattarella as a last resort to end the political impasse.

The 80-year-old president received 759 votes out of 983 cast in the lower house, following a deal between Draghi and Italy’s main parties to back the incumbent. “Mattarella’s re-election is fantastic news for Italians,” Draghi said.

Draghi was initially seen as a top contender for the job and made it clear he would be keen to become head of state. The former ECB president was thwarted by lawmakers in his own unity government who feared a return to political turmoil without Draghi at the helm.  

The outcome could provide relief to investors as it reduces the chances of early elections and will let Draghi press ahead with his reform agenda until the next election, due in 2023. BLOOMBERG