Berlusconi Vows to Resign after Passing of Italian Budget Bill

Italian Prime Minister Silvio Berlusconi speaks to journalists during his press conference, in Cannes, France, November 4, 2011. EPA/BGNES

Italian Prime Minister, Silvio Berlusconi, had confirmed plans of resigning under the condition the Parliament passes the Budget Bill, which includes austerity and economic reform measures he promised to Brussels.

Berlusconi has made the statement for the Italian Channel Five TV.

After the passing of the budget, the PM will give back his term to the Head of State, who will then begin consultations with political parties from the majority and from the opposition to appoint a new cabinet, as it emerged late Tuesday evening upon conclusion of a meeting between Berlusconi and President, Giorgio Napolitano.

The breaking news was reported just hours after the Italian PM lost his absolute majority in the Parliament's lowest chamber, when seven majority members announced they are leaving. He admitted this is blocking the work of the Parliament, pointing out Italy is in a difficult situation and must demonstrate it is capable of serious reform.

The reforms promised to the EU are scheduled to be passed on November 18 by the Senate and by the end of the month by the Chamber of Deputies.

Some of the options for the country's new government include a center-right cabinet or an expert cabinet of national unity.

Meanwhile, trading on the NYSE finished Tuesday evening with increase of main indexes after the news about Berlusconi's forthcoming resignation.

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