Coalition partner asks Berlusconi to resign

Italian Prime Minister Silvio Berlusconi's main coaltion partner has called on him to step down.

The call came just hours ahead of a crucial vote in parliament on the country's budget measures.

“We asked him to step aside, take a step to the side,” Northern League leader Umberto Bossi said.

Mr Bossi is the volatile ally who brought down Mr Berlusconi’s first conservative government in 1994 when he yanked his support.

Mr Bossi said the man Mr Berlusconi has already hand-picked to be his eventual successor, former Justice Minister Angelino Alfano, should now lead the government.

Meanwhile, the 10 EU states not in the eurozone have urged the single currency area to move fast with a convincing firewall to stop debt contagion endangering the entire bloc.

Sweden's Finance Minister Anders Borg warned that Europe is running dry on credibility.