Rome Italian President Sergio Mattarella has thwarted Prime Minister Matteo Renzi's plan to quickly resign by telling him to keep doing his job until Parliament sorts out the nation's budget for next year.
The move was seen as an attempt to reassure markets amid uncertainty about Italy's political future.
The budget law was approved by the Lower House of Parliament on November 28, but still needs Senate ratification, and local media said it could come by Friday.
"Considering the need to complete the parliamentary approval of the budget law to stave off risks of (emergency budget procedures), the president of the republic has asked the prime minister to defer his resignation and hand it in once the task is fulfilled," Mattarella's office said.
Renzi saw Mattarella twice during the day, and after the first meeting the President called for "calm" and, in a likely reference to the budgetary issue, said institutions have "in any case to meet commitments and deadlines".