Three important political parties – Five Star Movement (M5S), Matteo Salvini's far-right League and Silvio Berlusconi's Forza Italia – refused to participate in a confidence vote, which Draghi went on to narrowly win.
The hollow victory and the consequent events of the day mean that the snap elections could take place as early as late September.
The political crisis started last week when the Five Star Movement boycotted a vote on a €26 billion package, which would help the Italian people tackle inflation and the rise in energy prices.
The movement insisted that the package was not enough to help the population. The party was also reportedly upset at the inclusion in the package of a huge waste incinerator plant in the Italian capital.
It is pertinent to note that The League and Forza Italia have previously called for a new Draghi-led government, without the M5S in the coalition. They have even been demanding a cabinet reshuffle.