Italy is struggling to embrace the euro as long queues form outside banks, stations and post offices, with citizens complaining about a shortage of coins.

The bodies thought to be those of four dead journalists are to be flown out of Afghanistan by the Red Cross, according to reports.

Italy has pulled out of a European programme to build a large military aircraft, the Airbus A400M - a move some say creates uncertainty over the country’s commitment to an integrated European defence industry.

Silvio Berlusconi has formed Italy's 59th post-war Government.