Queen Elizabeth II will meet Pope Francis for the first time when she visits Rome in April as a guest of the Italian president, Buckingham Palace said.

Italian prime minister Enrico Letta was meeting the president last night to try to chart a way out of a deep political crisis after Silvio Berlusconi pulled his ministers out of the government and called for new elections.

Italy’s fragile coalition government has been pushed into a full-fledged crisis after ministers from former premier Silvio Berlusconi’s political party announced their resignations.

Italy’s fractious ruling coalition struggled to bridge differences over a housing tax that threatens to create a new crisis for a government already severely strained by the legal turmoil surrounding Silvio Berlusconi.

Italy’s fragile coalition government, already struggling to contain deep divisions over tax and economic policy, woke up to a whole set of new problems yesterday after Silvio Berlusconi’s conviction for tax fraud was upheld by the supreme court.

Two policemen have been injured in a shooting outside the Italian Prime Minister's office in Rome.

Italy has finally formed a new government, a coalition of Silvio Berlusconi’s forces and centre-left rivals who forged an unusual alliance to break a two-month stalemate following inconclusive elections.

Silvio Berlusconi yesterday repeated a demand to be included in any Italian government, but there was no sign his centre-left rival would renege on a promise not to ally with the tycoon to avoid political stalemate.

The Italian centre-left leader Pier Luigi Bersani has been asked to form the country's next Government.

Italy’s centre-left leader Pier Luigi Bersani said yesterday he would seek the backing of parliament for his policies on creating jobs and fighting corruption in the absence of enough support to form a government.

Italian politicians today elected centre-left leaders for both chambers of Parliament, paving the way for difficult talks to form a new government to get started.

Italy’s president has dissolved parliament following the resignation of Prime Minister Mario Monti, formally setting the stage for general elections in February in which Mr Monti’s participation remains unclear.

Prime minister Mario Monti has handed in his resignation to Italy’s president, bringing to a close his 13-month technical government and preparing the country for national elections.

Prime Minister Mario Monti has handed in his resignation to Italy’s president, bringing to a close his 13-month technical government and preparing the country for national elections.

Prime minister Mario Monti has told Italy’s president he is resigning because he can no longer govern after Silvio Berlusconi’s party withdrew crucial support.

Italian Premier Mario Monti has told the country’s president that he intends to resign since Silvio Berlusconi withdrew his support for the year-old government of technocrats and intends to quit as soon as Parliament passes critical budget legislation.

Silvio Berlusconi’s People of Freedom party withdrew its support for Italy’s technocrat prime minister Mario Monti, setting up a conflict that could force an early election.

Six Italian scientists and a government official were found guilty in a watershed trial of multiple manslaughter for underestimating the risks of a killer earthquake in the town of L’Aquila in 2009.

The possible return of Silvio Berlusconi to the political stage spooked rival politicians and investors, but it would be foolish to write the wily fox off yet, says Barry Moody

POPE Benedict XVI in his New Year’s homily yesterday praised young people as key to securing a future of hope despite what he called “shadows on the horizon of today’s world”.

ITALY’s president appointed former European Commissioner Mario Monti yesterday to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole eurozone.

ITALY’s president raced to appoint an emergency government yesterday to face a crisis endangering the whole eurozone, after Prime Minister Silvio Berlusconi resigned to the jeers of thousands of protesters.

Economist Mario Monti won some pledges of support today to lead a new technocratic government to rescue Italy from financial disaster, but not from the Northern League, a long-time ally of Silvio Berlusconi.

Italian Prime Minister Silvio Berlusconi has presented his resignation to President Giorgio Napolitano, bringing to an end his 18-year-career in politics.

The Italian parliament’s lower chamber today backed an austerity reform package demanded by the EU, paving the way for Prime Minister Silvio Berlusconi to quit.

The prospect of an Italian government led by leading economist Mario Monti helped calm market jitters today.

Market pressure on Italy eased slightly today after the president vowed to accelerate reforms to make way for Premier Silvio Berlusconi’s resignation as early as this weekend and a bond sale went better than expected.

Financial markets pounded Italy today amid worries that premier Silvio Berlusconi would linger in office and delay reforms.

Italy's stock market has closed down 3.78% this evening, amid uncertainty after Prime Minister Silvio Berlusconi said he would resign this month when parliament adopts key economic reforms.

In an attempt to reassure markets, Italy's president has said Silvio Berlusconi will definitely resign as Prime Minister and the country will either have a new government or early elections soon.

Italian Premier Silvio Berlusconi has confirmed he will not run again for office and said his hand-picked successor Angelino Alfano will be his party’s candidate when Italy holds new elections.

Italy became the latest target in Europe’s financial crisis today, as soaring borrowing rates intensified pressure on premier Silvio Berlusconi to resign.

PRESSURE mounted on Italy’s Prime Minister Silvio Berlusconi to quit yesterday as six former parliamentary loyalists called for a new government and the squabbling cabinet failed to agree an urgent economic reform program.

ITALIAN Prime Minister Silvio Berlusconi repeated promises of economic reform as Italian bonds came under renewed attack in the eurozone crisis and the centre-left opposition asked the president to name a new government.

ITALY braced for a confidence vote in Silvio Berlusconi’s government and Slovak leaders scrambled to secure approval for a stronger euro zone rescue fund yesterday, highlighting the political hurdles to resolving the bloc’s debt crisis.

ITALY’S second austerity package in less than a month was met with a chorus of criticism a day after becoming law, with the largest union threatening a general strike over the “injustice” of the measures.

Italy’s borrowing rates hit a new euro-era high today as a global market sell-off reignited fears that the debt crisis will engulf the eurozone’s third-largest economy.

ITALIAN prime minister Silvio Berlusconi has denounced what he called a campaign of lies and slander, and said he would survive tomorrow’s knife-edge confidence vote, as tens of thousands of protesters marched for a change of government.

ITALY was hit by a news blackout yesterday as journalists went on strike against a bill curbing the use of wiretapping proposed by the government of Prime Minister Silvio Berlusconi.

A COMBATIVE Prime Minister Silvio Berlusconi vowed yesterday to govern with “even more grit” after Italy’s top court lifted his immunity and he dismissed corruption charges against him as “laughable”.

LEADERS of the world’s industrialised powers warned yesterday that the global economy remains in danger and backed away from pledges on global warming as they started their annual summit.

ELUANA ENGLARO, the comatose accident victim at the centre of a right-to-die drama gripping Italy, died yesterday as lawmakers debated a bill to force doctors to restore her life support.

The chairman of BP predicted today that global economic conditions will remain difficult for some time but will eventually recover due to growth in China and the rest of Asia.

Italy is facing the prospect of an early election or the formation of an interim government after the resignation of prime minister Romano Prodi.