He tendered his resignation to President Sergio Mattarella, the ultimate arbiter of Italian political crises, who invited him to stay on in a caretaker capacity pending discussions on what happens next.
The uneasy coalition that has led Italy since September 2019 was fatally weakened earlier this month by the withdrawal of former premier Matteo Renzi's small but crucial Italia Viva party.
Ahead of a key vote in parliament this week that he looked set to lose, Conte informed his cabinet on Tuesday that he would quit in what supporters said was a move to form a new government.
After the meeting with Mattarella, a spokesman for the president said he reserves the right to decide (what to do next) and invited the government to stay in office in a caretaker capacity.
Mattarella will open discussions with party leaders on Wednesday afternoon which are likely to lead into Thursday -- leaving a vacuum at the top of the eurozone's third largest economy at a crucial time.
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