Italian President Sergio Mattarella announced Thursday that he had dissolved parliament and early elections would be called, following the resignation of Prime Minister Mario Draghi.

"The political situation led to this decision," Mattarella said in a brief televised address, hours after Draghi handed in his resignation in Italy's latest political crisis. 

Earlier, Draghi resigned as Italy's Prime Minister after his attempt to save his wide coalition failed when three important parties voted against a confidence motion, setting the path for quick elections as early as late September.

With a wave of public support, the former European Central Bank chief wanted to maintain his administration on the condition that his alliance "rebuild a contract of trust" that would allow it to work together to confront massive problems in the coming months.

However, on Thursday morning, Draghi formally submitted his resignation to Mattarella, who accepted it.

The populist Five Star Movement (M5S), Matteo Salvini's far-right League, and Silvio Berlusconi's Forza Italia, on the other hand, did not vote in a Senate confidence motion on Thursday night, which effectively asked parties to accept a spirit of cooperation.

While President Sergio Mattarella may still try to form a new administration with a parliamentary majority, quick elections in the fall are the most likely conclusion.

The premier won a vote of confidence late Wednesday, with 95 senators voting in favor and 28 voting against. However, the ballot was meaningless because the center-right League and Forza Italia, as well as the Five Star Movement, did not vote.

Draghi first volunteered to resign last week, when the Five Star Movement, a major coalition partner, snubbed another vote of confidence in his administration.

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.

A lot is at stake in the EU country, as a government collapse would make matters worse for the Italian people, especially as an inflation crisis ravages Italy. The collapse would also delay the budget, threaten the European Union's post-COVID recovery funds, and further affect already unstable markets.

It is noteworthy that Polls suggest that the majority of Italians want Draghi to stay in his post at least until the country holds its general election in May 2023.