GETTY The repeal of the Jobs Act has been hugely unpopular in Italy

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And worringly some of the country's largest corporate firms are getting set to slash jobs as the nation faces uncertainty over political decision making and its worsening financial crisis. The next two weeks will be nail biting for new Prime Minister Paolo Gentiloni who is facing yet more fall-out from another potential damaging referendum. Italy's Constitutional Court will make a ruling on the Jobs Act referendum proposed by Italy's main union on Wednesday.

GETTY Italian youngsters have been rioting and protesting for more than three years

We still see early elections in Q2 2017 or possibly after the summer if the Jobs Act referendum is rejected Fabio Balboni, European Economist at HSBC

But if it gets the go ahead it could spark an early General Election in a vote weary nation which is still reeling from Matteo Renzi's resignation last month. Italy's job market reform was a key mandate of Renzi's tenure but unions stepped in to stop him from repealing the Jobs Act over fears it could leave employees in a precarious contracts. Now as the country's largest corporates including banks and its airline announced thousands of job losses this week, the country is also facing a ratings downgrade.

GETTY Italy is set for a critical few weeks as their economic woes mount

The youth unemployment rate has rocketed to 39 per cent with 627,000 people under the age of 25 out of work in the crisis hit country. And the general unemployment rate rose to the highest level since June 2015 as families face a very uncertain future amid massive lay offs. The new Italian government is desperately trying to come up with at a rescue plan for beleaguered lender Banca Monte dei Paschi di Siena. However elsewhere things are not looking good.

GETTY There are more than 600,000 young people unemployed in Italy

Airline Alitalia is discussing the potential of as many as 1,600 job cuts according to reports. Meanwhile the country's largest bank Italy's biggest bank UniCredit has announced it is also to slash thousands of jobs to shore up its finances. Bosses there say the total number of expected job losses at the Milan-based bank is likely to hit 14,000 by 2019. Additionally Ericsson AB could be set to cut a quarter of its local workforce equating to 1,000 jobs after losing a contract to manage Italy's largest wireless network. And analysts are warning of dire consequences for the country's sovereign bonds market ahead of a crunch announcement by ratings agency DBRS on Friday.

In pictures: Crises that have crippled Italy Thu, November 2, 2017 The European Union has warned that Italy's economy is not improving Play slideshow EPA 1 of 9 November 2016: Florence erupts in violence as anti-Renzi protesters clash with riot cops. Hooded youths attacked lines of cops protecting embattled prime minister Matteo Renzi, who was in the city for crunch political talks.