Italian Prime Minister Mario Draghi resigned on Thursday after his coalition imploded, setting up the country for a new era of political chaos at a critical time.

Driving the news: He submitted his resignation to President Sergio Mattarella, who has "taken note" and asked Draghi to remain as a caretaker.

• Mattarella rejected Draghi's first attempt to resign last week, asking him to see if he could keep a coalition together until the legislature's current term expires in 2023.
• Draghi's attempt failed after three conservative parties boycotted a confidence vote in the Senate.

The big picture: Draghi, known for rescuing the Euro during his time as the European Central Bank's president, was tapped to lead a unity government last year in an attempt to add stability to the country's often chaotic political scene.

• He led Italy's 67th government in just over 75 years, per Bloomberg.

What's next: Draghi's resignation sets up an early election as soon as late September or early October, AP reports.