Date for Italy referendum on constitutional reform to be set at September meeting

The Italian government will meet on 26 September to decide on a date for the referendum on constitutional reform, the Prime Minister said on Thursday.

Matteo Renzi previously said the referendum would be held between 15 November and 5 December this year.

Italians will vote on the proposal by Renzi, to limit the power of the Senate, the upper house, so it can no longer halt legislation indefinitely, it would get referred to on fewer matters and lose the authority to call a vote of no confidence. It will also rein in the powers of regional governments.

The 315 senators would be replaced by 100 regional councillors and mayors who are indirectly elected or appointed.

Opponents to the constitutional changes said it would give Italian prime ministers too much power.

There have been 63 governments since end of the Second World War, and the country is currently facing a banking crisis, economic stagnation and experiencing high migration.

The referendum is the latest in a series of attempts to address the country’s democratic problems through constitutional reform. Renzi said the changes will save about €500m, which will go to charity fund, and streamline the legislative process.

The referendum, if lost, could have wider ramifications for Europe.

Renzi, who became prime minister in 2014, has staked his political future on the outcome as he said if he does not win he would resign, which would force a general election.

The general election could hand populist eurosceptic party, the Five Star Movement, the opportunity to call for a referendum on the continued membership of the euro. The EU is still reeling from Britain's June referendum which saw the country vote to leave the trading block.

The Five Star Movement and Renzi’s centre-left Democratic party are nearly tied in polls.

If the referendum is won Renzi would stay in power until the 2018 election, which he said he might be tempted to run again and enact reforms to bureaucracy and the judiciary.

Opinion polls suggested the outcome of the referendum is currently too close to call.