Italian President Sergio Mattarella, who said he wanted a "high-profile" administration to take office to tackle the health emergency, summons former European Central Bank President Mario Draghi for talks.
Humanitarian groups have hailed the decision as "historic," as it will determine a complete blockade on weapons sales to the Gulf countries.
Italian Prime Minister Giuseppe Conte will hand in his resignation to the head of state after convening the cabinet to inform ministers of his decision.
Former PM Matteo Renzi takes back his support from the ruling coalition, paving way for political crisis amid the resurgent Covid-19 pandemic.
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