President: Berlusconi will resign, new govt soon

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.

President Giorgio Napolitano said concerns about whether Mr Berlusconi would actually leave office are completely unfounded.

He said economic reforms demanded by the EU would be passed by parliament “in a matter of days” and that he would work to avoid a prolonged period of political uncertainty.