Someone will def be able to describe it better than me but AFAI understand it (anyone who understands it better: please correct me if I’m wrong on anything!)…
It’s a constitutional reform referendum. Currently they have a perfect bicameral system, where both houses need to agree for laws to be passed, meaning lawmaking is a v slow process. Proposed changes in the referendum involve reshaping the role of the second chamber of senators so that they are only consulted on major bills, and having the number of senators cut to 100 (unelected). It’s a lot more complex than that, I think, but that’s what I’ve understood as the basics?
Italian PM said he’d quit if it didn’t go through; looks like he’s lost it by a wide margin (as predicted in advance of the vote) - not a surprise really as most political parties, constitutional experts etc opposed it. Some people think reform doesn’t go far enough, some think it hands too much power to the government.
As with Brexit, for a lot of people it’s not really a vote on the issues as much as a vote of confidence in the governing party/leader, and as Italy hasn’t really recovered from the recession/has 36% youth unemployment rate, people are pissed off with Renzi and everyone’s favourite whipping boys, The Establishment.
The anti-establishment party of choice are 5 Star Movement, who baffle me a bit in all honesty - read into them but all I properly understood about them is that they’re anti-career politicians (want a 2 term limit for anyone in any political position - so a 2-term councillor can’t then become a senator, for example? I think?), and want a referendum on using the Euro (which they oppose). I think they also support ‘internet democracy’, but not really sure how that works. They’re leading in some of the polls, and won the Rome mayoral elections, although they’d struggle to become the national governing party as they’re not keen to go into coalition with anyone (and vice versa). Anyway, a No vote is being seen as a victory for 5SM. Lega Nord, the Italian UKIP, were also strong opponents of the referendum and their strongholds saw high turnout today.
If Renzi goes then there’ll need to be new elections, which 5SM could win, and the consequences of that are further Euro destabilisation (short-term if a referendum on it fails, long-term if it succeeds), further EU destabilisation, and maybe Italexit.