Italian Prime Minister Mario Draghi's time seems to be up after three major parties refused to support him. Draghi's resignation would throw the country into months of political upheaval at a time when economic warning lights are flashing.

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.

Read next: Italian PM Draghi resigns, President Mattarella refuses resignation

The premier claimed that there was no longer the broad support needed to rule and struck a tough tone in parliament on Wednesday, urging parties to support his changes and chastising them for the infighting that had hindered his administration's action in recent months.

Matteo Salvini's League and Silvio Berlusconi's Forza Italia had pushed Draghi to drop Five Star as a governing partner and lead a "completely revamped" cabinet in a heated discussion in Rome's Senate.

What is the future of Italian stocks and bonds?

Former European Central Bank President Mario Draghi, 74, has rejected political leaders' offers of compromise. The threat of Draghi's government falling weighed on Italian stock and bond futures.

The FTSE MIB Index futures contract plummeted 4%, while bond futures hit a three-week low. The euro fell versus the US dollar. Draghi, an unelected technocrat, was appointed Prime Minister early last year after parties failed to reach an agreement on a political nominee.

#24luglio. Il balletto degli irresponsabili contro Draghi può provocare una tempesta perfetta. Ora è il tempo di voler bene all’Italia: ci aspettano mesi difficili ma siamo un grande Paese.

— Paolo Gentiloni (@PaoloGentiloni) July 20, 2022

The European Union's economy commissioner, Paolo Gentiloni, has warned that Italy is facing a "perfect storm".

The latest round of political turbulence comes at a difficult time for the eurozone, with mounting concerns about a potential recession, despite the fact that the Italian economy has performed better than its rivals.

Early elections would also jeopardize discussions for Italy's 2023 budget, which typically dominates parliamentary proceedings in the autumn.

Read next: Italy PM calls for 'new pact' to save coalition

While Draghi will officially stay Prime Minister until elections, presumably on Oct. 2, his grandiose plan to reinvent the country is unlikely to be implemented anytime soon, and the news will ruffle markets.

During his 18-month tenure, Draghi crafted a reform plan agreed upon with the European Union to reduce red tape and improve competition in Italy.

This aided the country's eligibility for EU recovery money. President Sergio Mattarella must now decide whether to call a fresh election or establish a caretaker administration, both of which are widely regarded as unlikely. If the president decides to hold new elections, they must be held within 70 days.

Read next: Italian parliament fails in third bid to elect President