Matteo Renzi concedes defeat in Italian referendum and steps down as prime minister

Italian Premier Matteo Renzi is seen on a TV monitor speaking during a press conference at the premier's office Chigi Palace.

Matteo Renzi, the Italian prime minister, resigned late on Sunday night after losing a constitutional referendum.

He conceded defeat before official results were announced as exit polls showed he was heading for a heavy defeat.

Speaking in Rome, the Italian prime minister, conceded defeat after an "extraordinarily clear" referendum result.

"My experience of government finishes here," Mr Renzi told a press conference after the No campaign won what he described as an "extraordinarily clear" victory in the referendum on which he had staked his future.

The former prime minister sent out a tweet thanking his supporters.

Grazie a tutti, comunque. Tra qualche minuto sarò in diretta da Palazzo Chigi. Viva l'Italia!
Ps Arrivo, arrivo😀

— Matteo Renzi (@matteorenzi) December 4, 2016

Earlier, Renzi had made no comment as he voted in Pontassieve, a Tuscan town east of Florence, along with his wife, Agnese Landini.

The risk of political instability in Italy, Europe's fourth largest economy, had triggered market reaction before the vote, with bank stocks sinking and the borrowing costs on sovereign debt rising.

European partners were closely monitoring the vote. A headline in the Frankfurter Allgemeine Zeitung said Renzi's "arrogance is his shortcoming," noting that "Europe is at stake" in the vote.