ROME – Italian President Giorgio Napolitano confirmed that he is “close to the end” of his time as head of state, suggesting the “imminent end of 2014” as a cut-off.

 The announcement Thursday was widely expected after Napolitano sparked speculation by saying earlier in the week that he is “committed” to maintaining “institutional continuity” during Italy’s presidency of the EU, which ends Dec 31.

 Widespread reports in the Italian media suggest that Napolitano seems to have fixed on Jan 14 to step down, which would be one day after Prime Minister Matteo Renzi officially passes the E.U presidency to Latvia.

 At 89 Napolitano is the second-oldest elected head of state in the world, second only to Robert Mugabe. He has widely been seen as a stabilizing figure as Head of State since 2006 in the notoriously fragile Italian political establishment, overseeing the economic crisis and several failed governments.

 He put himself forward for re-election in 2013 however only after five inconclusive ballots to find a new candidate, and it has been widely expected that he would not serve a complete seven-year term.

 The imminence of the resignation begs the question – who will be next? The Italian presidency is a role of relatively controlled political power. However, the election could be a powerful indicator of Prime Minister Renzi’s popularity and the likelihood that he will be able to achieve his controversial reforms.

 A potential candidate for Renzi’s endorsement is Romano Prodi, the former Prime Minister from his own Democratic Party, who was previously a candidate for the Presidency in 2013. However Il Corriere reports that Renzi has in fact been in secret talks with Prodi promising him support in a bid for the post of Secretary General of the U.N at the end of Ban Ki-Moon’s term.

 Napolitano himself labelled current Economy Minister Pier Carlo Padoan as “reliable” on Tuesday, and praised his work on reforming the government’s spending, but refused to comment on the politician’s possible future in the presidency. Padoan’s former career with the IMF and throughout the finance industry would send a clear message in the event of his election on Italy’s commitment to financial recovery. He is however relatively inexperienced in politics, having only become a cabinet member in Feb 2014.

 Former president Berlusconi, meanwhile is reportedly supporting former Justice Minister Paola Severino, who, if elected would be the first woman to hold the Italian presidency.

 Parliament’s ability to arrive at a consensus on a candidate will likely prove crucial to the continuing stability of Renzi’s government. In the first three of a series of votes in parliament, a two-thirds majority is needed to pass a candidate. Renzi himself has insisted that the election process will go smoothly, saying, “I believe that parliament has learnt its lesson from April 2013 and will be able to do what it has to within the agreed time.”