Italian stocks lead a decline in Europe as the political crisis worsens

Italy’s stock index fell nearly 2% on Thursday as the government collapsed, putting pressure on broader European shares, despite some relief from the resumption of Russian gas imports.

The Italian presidency said in a statement that Prime Minister Mario Draghi submitted his resignation on Thursday to President Sergio Mattarella, who asked him to remain in his caretaker position.

The statement did not say whether Mattarella would dissolve parliament or call early elections.

The Italian banking sector index fell 4.8 percent.

The pan-European STOXX 600 index fell 0.2 percent, with all eyes turned to the European Central Bank meeting at 1215 GMT. Investors are awaiting the bank’s decision to raise interest rates.

Some relief came after Russian gas resumed flowing through the largest pipeline between Russia and Germany after a 10-day break.