Mario Draghi, the prime minister of Italy, tendered his resignation to President Sergio Mattarella on Thursday after his unity government disintegrated, throwing the nation's politics and financial markets into disarray.

On Wednesday, three of Draghi's key allies snubbed a confidence vote he had scheduled in an effort to mend fences and revive their fractured coalition, which led to the collapse of Italy's government.

“Thank you for all the work we have done together over this period. After the vote took place last night by the senate of the Republic, I ask to suspend this session because I am on my way to the President of the Republic to communicate my intentions,” Draghi informed legislators before resigning, according to CNBC.

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According to the Guardian, the former head of the European Central Bank wanted to maintain his administration on the condition that his coalition "rebuild a pact of trust" that would allow it to cooperate and overcome significant challenges in the upcoming months.

The populist Five Star Movement (M5S), the far-right Lega of Matteo Salvini, and Silvio Berlusconi's Forza Italia, on the other hand, chose not to take part in a confidence vote in the senate on Thursday night that effectively asked parties to endorse a spirit of collaboration.

The political crisis began last week when the Five Star Movement (M5S) party abstained from a vote on a package meant to assist Italians to combat inflation and energy bills on the grounds that it was insufficient. The party was also not pleased with the clause in the package that called for the construction of a huge waste incineration facility in Rome.

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The crisis has disrupted months of stability in Italy, during which Draghi had improved the nation's position in financial markets and helped define Europe's firm reaction to Russia's invasion of Ukraine.

(With inputs from agency)

(Edited by : Priyanka Deshpande)