Italian Prime Minister Mario Draghi resigned Thursday after efforts to bring the country's fractious parties to heel failed, kicking off a snap election campaign which could bring the hard right to power.

The internationally respected 74-year-old formally handed his resignation to President Sergio Mattarella, whose role it is to now guide the country out of the crisis.

Mattarella is likely to dissolve parliament and call early elections for September or October, according to political analysts. Draghi may stay on as head of the government until then.

"Italy betrayed", the Repubblica daily frontpage cried, while the Stampa ran with "For Shame".

Based on current polls, a rightist alliance led by Giorgia Meloni's post-fascist Brothers of Italy party would comfortably win a snap election.

Draghi, a former head of the European Central Bank, was parachuted into the premiership in 2021 as Italy wrestled with a pandemic and ailing economy.

On Wednesday, he had attempted to save the government, urging his squabbling coalition to put aside their grievances for the sake of the country.