On Monday, Italy's parliament will vote for a new president, with Prime Minister Mario Draghi among the leading contenders in a wide-open race that will be eagerly watched by financial markets.

Politicians in Italy are concerned that the outcome would create new political turmoil in the euro zone's third-largest economy, which is dealing with a rise of COVID-19 infections and fatalities.

The head of state is in charge of settling political problems, which is a crucial job in a country whose administrations only last an average of one year. When it comes to appointing prime ministers and other cabinet members, the president has the last word.

More than 1,000 MPs and regional delegates will gather at 1400 GMT for the first round of secret voting to replace departing President Sergio Mattarella, in a process that may take several days. find out more

In any of the first three rounds, a two-thirds majority is required, with an absolute majority being sufficient thereafter.

Draghi, who now heads a government of national unity, has stated that he is interested in the position, which has a seven-year tenure. Some parties, however, are hesitant to support him, fearing that his departure would lead to political chaos and an early election.

"At this difficult moment, it would be dangerous to remove Draghi from the post of prime minister," rightist League leader Matteo Salvini said on Sunday, echoing similar remarks made by his coalition partner Silvio Berlusconi.

Because neither the center-right nor the center-left has enough votes to impose a candidate from their own camp, a compromise will almost certainly be required to avoid a deadlock.

Because such a settlement appears to be unattainable, the first round of voting on Monday is quite likely to be inconclusive.

Both the 5-Star Movement and the center-left Democratic Party (PD) said on Sunday that their MPs will vote with blank ballots to buy time while cross-party talks continue.

On Saturday, Berlusconi announced his withdrawal from the contest. The center-left had ruled out supporting the former prime minister, who was unlikely to get the necessary wide support.

If Draghi were to become president, an agreement on a new prime minister would be needed right once to ensure that Italy's bid for 200 billion euros ($226.80 billion) in EU pandemic relief funding is not jeopardized.

Until recently, Draghi was widely regarded as the frontrunner for the presidency.

His prospects appear to have dwindled, but he remains among the leading runners, with both Salvini and Berlusconi now pressing for him to carry on as premier for the final year of the government's mandate.

Because most conversations take place behind closed doors, politicians' public statements are frequently merely tactical maneuvers. Enrico Letta, the head of the Democratic Party and a backer of Draghi, said on Sunday that he wanted to confirm with Salvini if his rejection of the prime minister was final.