Italy's Matteo Renzi resigns as party chief

Former Italian Premier Matteo Renzi has resigned as Democratic Party leader in a bid to win a fresh, stronger mandate before the national election.

His resignation triggered a leadership contest aimed at neutralising a rebellion of left-wing dissidents angry at his reformist agenda.

The tensions within the party come at a delicate time in Italian politics, with general elections to be held within a year at the latest, and the anti-euro, anti-establishment Five Star Movement making a bid to emerge as the leading party. In addition, Italy’s economic performance has been lagging behind the rest of the Eurozone, its banking system is vulnerable, and there are rising concerns about its inability to bring down its debt. 

Renzi insisted he won't submit to what he called the "blackmail" of a more left-leaning faction threatening a schism if he again seeks the top party post.

“We have a responsibility towards our country,” Renzi said at an assembly of party delegates in Rome on Sunday. “We cannot be engaged in internal discussions at this time. After today, let’s get back on track,” he said.

Renzi, 42, led the Italian government for nearly three years until he was forced to step down last December in the wake of the heavy defeat of his flagship constitutional overhaul in a referendum.

The national election, due in early 2018, might come earlier if Premier Paolo Gentiloni loses control of a frequently squabbling centre-left parliamentary majority.