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After the Brexit vote in the UK, it was Italy's turn to go to the polls in a highly divisive referendum about Prime Minister Matteo Renzi's proposed constitutional reforms.

SEE ALSO: The Brexit plan is there is no Brexit plan, says leaked memo

As predicted by the polls, Italians overwhelmingly rejected those changes leading to Renzi's resignation and plunging Europe's third largest economy into a political crisis.

So why should you care? If you are concerned about the growth of populism and the far-right in Europe, then Italy's referendum is a sign of things to come.

The victory of the No campaign is widely seen as a success for the anti-establishment, populist movement that is sweeping European politics. But what is really going on?

What exactly happened?

Renzi, a self-styled reformist, pegged his whole political career to the proposed constitutional changes, even tying his government's survival to the vote's results.

Many critics accused him of turning the referendum into a popularity contest for himself.

Echoing David Cameron's response to the Brexit vote, Renzi said he would resigned if the No campaign won.

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That played straight into the hands of anti-establishment parties such as the far-right Northern League and the populist Five Star Movement (M5S), led by comedian-turned-politician Beppe Grillo. Both groups have pledged to hold a referendum on whether to remain part of the single currency (the euro).

The No campaign, which gathered roughly 60% of the vote, was a very composite group, which included moderate and pro-Europe voices that feared constitutional change would give too much power to the government.

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In the end, those multiple factors marked the end for Renzi's ambition to reform Italy.

What happens now?

At an emotional press conference, Renzi announced he would quit.

He will submit his resignation to Italy's President Sergio Mattarella who has the power to accept his resignation or ask Renzi to stay. The latter is unlikely considering the result of the vote.

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It's then up to Mattarella to appoint a new prime minister, who will likely be a technocrat in charge of changing the electoral law, passing stability measures and leading Italy to the 2018 elections.

But the president will be under pressure from the Five Star Movement and the Northern League to dissolve the current parliament and call snap elections.

Why it's important?

Anti-establishment movements are applauding the result.

On his blog, Grillo said "democracy won" and called for snap elections.

Matteo Salvini, leader of the far-right, anti-immigrants and anti-Europe Northern League, reacted by relating the victory at the referendum to Donald Trump's election, Russian president Vladimir Putin and France's far-right Front National leader Marine Le Pen:

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Le Pen congratulated her friend Salvini for the victory:

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Renzi's resignation has sent shockwaves across Europe and is seen as a big blow to traditional parties.

It came on the same day that the Green Party in Austria barely managed to block the advance of populist forces by defeating the presidential candidate of the neo-Nazi Freedom Party.

In the wider European context, the debate on populism is growing even louder.

France, Germany and the Netherlands are all set to hold important elections, with populist figures such as Le Pen in France and anti-immigrant Geert Wilders in the Netherlands ready to capitalise on growing anti-European sentiment.

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