Prime Minister Draghi's measures - a package designed to address the cost of living crisis in Italy - were approved with 172 votes in favor and 39 against. However, the 5-star boycott puts the government at real risk of collapse and could lead to an early election.
After winning the vote but losing the support of the 5 Stars, Mr. Draghi issued a statement on July 14 saying: "I would like to announce that tonight I will present my resignation to the President of the Republic".
The Italian Prime Minister added: "Today's votes in the National Assembly are very meaningful from a political perspective. Most of the national unity that has supported this government since its establishment is gone."
Previously, Mr. Mario Draghi said he would not lead a government without 5 stars.
However, Italian President Sergio Mattarella rejected Mario Draghi's resignation, asking him to speak before parliament to assess the political situation.
"The President of the Republic does not accept resignation and invites the Prime Minister to appear before the National Assembly for information exchange, to assess the situation arising from the results of today's meeting at the Republican Senate that can be held at an appropriate forum" - the Italian president's statement emphasized.
Some Italian political parties supported President Mattarella's decision.
"Italy, at this difficult time, cannot be without Draghi" - Mr. Renato Brunetta, Minister of Public Administration from the Go Italian Party, shared.
Foreign Minister Luigi Di Maio described his former party's decision, the 5-star movement, as "a clear irresponsibility that has plunged the country into a dead end". Di Maio left the party in June and founded a new one.
But Giorgia Meloni, leader of the Italian Brotherhood, the only opposition party, called for an "immediate election". This country is in a storm, he said, listing all the difficulties at the international and domestic levels, from the Ukrainian war to rising energy prices.
The 5-star pop art movement has opposed Draghi's living expenses package because it believes it is not strong enough. For a long time, the 5 Stars have threatened to withdraw support.
Mr. Draghi was appointed Prime Minister of Italy in 2021 to help the country recover from the COVID-19 crisis. Mr. Draghi was President of the European Central Bank from 2011 to 2019.
When he took office as Italian Prime Minister, he appointed a cabinet consisting of members of many of the country's political parties.
