Rome — Italian Prime Minister Matteo Renzi vowed to resign after suffering a crushing defeat on Sunday in a referendum on constitutional reform, tipping the eurozone’s third-largest economy into political turmoil. His decision to quit after just two-and-a-half years in office deals a blow to the EU, already reeling from multiple crises and struggling to overcome anti-establishment forces that have battered the Western world this year. The euro fell to 20-month lows against the dollar, with markets worried that instability in the eurozone’s third largest economy could reignite a dormant financial crisis and deal a hammer blow to Italy’s fragile banking sector. Renzi’s resignation could open the door to early elections next year and to the possibility of an anti-euro party, the opposition 5-Star Movement, gaining power in the heart of the single currency. 5-Star campaigned hard for a "no" vote. "I take full responsibility for the defeat," Renzi said in a televised address to the natio...
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