Italy becomes third domino to fall, following referendum vote

ITALIAN Prime Minister Matteo Renzi has resigned following the country's decision to vote "no" on Sunday in a landmark constitutional referendum. Following Donald Trump's election as US president, and the "Brexit" vote in June, the poll is the latest in which victory by anti-establishment forces has sent shock waves internationally.

However, showing that there are limits to the apparently growing populist mood across much of the world, Sunday's presidential election in Austria saw the convincing defeat of Norbert Hofer. The Freedom Party leader, who would have become Europe's first far-right head of state since 1945, was convincingly beaten.

Nonetheless, most eyes are now on Italy and the ramifications of that referendum, in the eurozone's third-largest economy, could be both economic and political in nature. Politically, the vote could have contagion beyond Italy, potentially whipping up fresh turmoil across Europe, especially in the context of important elections in countries from the Netherlands in March, France in April and May, and Germany in September.