Berlusconi party backs interim PM

A close associate of Silvio Berlusconi has promised that the outgoing Italian prime minister’s party will give full support to Mario Monti, as the economist prepares to form a government which aims to save the country from financial disaster.

Mr Monti held talks into the early hours with Angelino Alfano, the secretary of Berlusconi’s People of Freedom party, to smooth over tensions.

Outgoing Foreign Minister Franco Frattini told Rome daily Il Messaggero that backing from both Mr Berlusconi and Mr Alfano ensures Mr Monti the “full commitment” of their party, the largest in Parliament.

Mr Berlusconi, bowing to market pressures, resigned last week.

Italy won some respite in the markets today, as the yield on its 10-year bonds dropped 0.16 percentage points to 6.77%.