The offer came just hours after his coalition partner, the Five Star Movement, withdrew its support for a proposed economic package.
Leader of the Five Star Movement party, Giuseppe Conte, boycotted the government’s €23 billion package, which is designed to assist families and businesses.
He argued that Draghi’s proposal did not do enough to tackle the cost of living crisis.
Tensions have been high in the Italian political sphere in recent weeks, due to the party split created by Five Star Movement member, Luigi Di Maio.
Conte had recently presented Draghi with a list of demands that, if not met, would cause his party to leave the coalition.
On Tuesday, Draghi demonstrated a willingness to reach an agreement and address some of the party’s key issues, such as the introduction of a minimum wage.
The prime minister stressed that the government’s power would be compromised if parties within the coalition started to issue ultimatums.
Federal Secretary of Italy’s Lega Nord party, Matteo Salvini, together with the leader of the Brothers of Italy party Giorgia Meloni, have called for elections to be held earlier than anticipated.
Speaking to his cabinet, the prime minister said:
“The pact of trust at the heart of the government no longer exists.
“The conditions to fulfil the government’s proposals no longer exist.
“We must be proud of what we have achieved.”
Draghi, who is 74 years old, was appointed by Mattarella last year with the aim of leading Italy through its post-pandemic recovery.
