Italy's Senate backs austerity bill

The Italian Senate today passed a key package of economic austerity measures demanded by the EU.

The move paves the way for Premier Silvio Berlusconi to quit as early as this weekend after the lower chamber clears it.

The Chamber of Deputies could take up the legislation as early as tomorrow.

The Senate voted 156-12 to pass the budget bill, which contained the reform measures.

Mr Berlusconi has promised to resign as soon as parliament passes the reforms.

There are mounting indications that respected economist Mario Monti will be asked to head a transitional government to push through even more difficult reforms to pull Italy back from a Greek-style economic crisis that would threaten the existence of the entire eurozone and cause a global recession.