Italians are voting in a referendum which is being closely watched for further signs of anti-establishment sentiment in Europe.

The vote, called by centre-left Prime Minister Matteo Renzi, is on plans to streamline parliament but is expected to be used by many as a chance to register discontent.

Populist parties have campaigned for a “no” vote and Renzi has said he will resign if he loses.

Meanwhile, opinion polls suggest he would face defeat.

A “no” vote for Renzi would follow the UK's vote in June to leave the European Union, as well as the rise of the anti-immigrant Front National in France and populist parties elsewhere, along with Donald Trump's unexpected victory in the US presidential election.

The “no” campaign in Italy has been spearheaded by the the anti-establishment Five Star Movement, led by Beppe Grillo. It wants a referendum on whether Italy should keep the euro.

The Five Star Movement and the anti-immigrant Northern League would receive a boost from the prime minister’s defeat.

Many voters are fed up with years of economic stagnation.

But the possibility of Renzi, 41, falling from power has reignited concerns about financial stability in the eurozone’s third largest economy.

The reforms include reducing the power of the senate. Its members would be cut from 315 to 100 with most drawn from mayors and regional representatives.

BDST: 1302 HRS, DEC 04, 2016
SR