Italy’s president was to hold crisis talks with political leaders on Thursday after Romano Prodi resigned as prime minister following a parliamentary defeat on foreign policy. The resignation raised fears that Italy was returning to the days of short-lived governments and paralysis in policymaking.

Mr Prodi, 67, handed in his resignation on Wednesday night to Giorgio Napolitano, Italy’s head of state, who will hold meetings to see who, if anyone, has enough support to form a new government.