Italian Prime Minister Mario Draghi announced Thursday that he will resign amid a political crisis sparked by the refusal of the Five Star Movement to participate in a government confidence vote.

"I want to announce that this evening I will hand in my resignation to the president," Draghi told his cabinet.

He indicated that the conditions necessary to carry on with the coalition government were "no longer there," and the "pact of trust that the government is based on has gone."

Italian President refuses Draghi's resignation

In response, Italy's President Sergio Mattarella refused to accept Draghi's resignation, in a political crisis that experts warned could send the eurozone's third largest economy to snap elections.

Mattarella "did not accept the resignation, and invited the prime minister to appear before parliament to make a statement," the presidential palace confirmed, amid reports saying that Draghi would address parliament next week to see if he has the necessary majority to stay on.