Italian Prime Minister set to resign

Italian Prime Minister, Silvio Berlusconi, has told the country's president that he will resign after the new budget law currently making its way through parliament is approved.

Berlusconi said "I will resign as soon as the law is passed, and, since I believe there is no other majority possible, I see elections being held at the beginning of February and I will not be a candidate in them."

The budget law is expected to be passed by the end of this month, but its passage might now be accelerated.

President Giorgio Napolitano said Berlusconi was aware of the consequences of a vote on crucial budget measures in parliament on Tuesday in which his centre-right coalition failed to secure a majority in the lower house.

The Vote

Berlusconi's government obtained only 308 votes, falling short of an absolute majority of 316 in the 630-seat lower house as former coalition allies and even some members of Berlusconi's own party voted against the government.

While Mr Berlusconi's party wants fresh elections, the opposition wants a national unity government.

Package of reforms

It is expected that Italy's parliament would approve a package of reforms to shore up the economy which is badly affected by the Eurozone debt crisis by the end of the month.

But the Italian president will begin consultations with the political groups on the way forward only after the budget measures have been passed.

BBC/Aljazeera/ Adekusibe/Ekata