ROME—Italian Premier Mario Draghi offered to step down Thursday after a populist coalition partner refused to vote for a key bill in Parliament, but the nation’s president quickly rebuffed him, leaving one of Western Europe’s main leaders at the helm for now.
The rejection of the tendered resignation left in limbo the future of Draghi’s 17-month-old government, officially known as a national unity coalition, but with its survival sorely tested by increasingly sharp divergences within the coalition.