Italy's Prime Minister Giorgia Meloni has lost a key referendum on a constitutional reform which had turned into a vote on her government.

The result gives around 54% to the No campaign and 46% to the Yes vote which Meloni had backed.

In a video posted on social media even before all the ballots were counted, Meloni said Italians had voted with clarity and she would respect their decision, but she regretted a lost chance to modernise the country.

This marks the first significant defeat for Meloni and her right-wing coalition, which has overseen a rare period of political stability for Italy. Opposition parties are hailing the result as a sign that voters are looking for change, with a general election due next year.

When the two-day referendum ended on Monday afternoon, exit polls initially showed the No vote leading by a small margin, but that grew to a substantial lead as the count progressed.

Despite the complex question on the ballot paper, turnout was almost 60%. A high figure had been expected to favour the government, but it was not enough to swing the vote.

The reform voters rejected would have inscribed a firm separation between judges and prosecutors into the constitution, and also proposed distinct bodies to govern them and a new disciplinary court.

The government argued the change was critical to improving judicial independence, while the opposition countered that it would shatter a careful balance of powers established following the defeat of fascism, increasing political influence over the courts.

Meloni faced challenges as many Italians struggled to understand the technical details, leading to the vote transforming into a plebiscite on her leadership over the last three and a half years.

Meloni is a close ally of Donald Trump, but the US president is increasingly unpopular in Italy, alongside concerns over the impact of ongoing conflicts on energy costs.

Despite the setback, Meloni ruled out stepping down, stating, The vote is not about me, but about justice. However, her government faces increasing pressure from opposition leaders advocating for change.

Democratic Party leader Elly Schlein emphasized that Meloni’s defeat signals there is an alternative to her government ahead of next year's general elections, indicating a possible shift in Italy's political landscape.