Italian Prime Minister Berlusconi likely to resign today

Rome: Italian Prime Minister Silvio Berlusconi is supposed to resign on Saturday after the lower chamber of the parliament passed a set of reforms, paving way for an emergency government and ending the 17-year political era in the European country.

Berlusconi agreed to step down once the bill was passed earlier this week when it became clear he could no longer garner support to keep his coalition government intact.

In a statement issued after his final cabinet meeting, Berlusconi confirmed he would go to see President Giorgio Napolitano to hand in his resignation, bringing an end to one of the most scandal-plagued periods in recent Italian history.

The definitive approval of the package by the lower house will mark the final act of the Berlusconi government. He is expected to hold a last cabinet meeting and then go to the Quirinale Palace and hand his resignation to President Giorgio Napolitano.

His resignation will trigger a series of events over the weekend and most likely conclude on Sunday night or Monday morning with the formation of new government headed by former European Commissioner Mario Monti.

Global markets panicked earlier this week because of the sustained political turmoil in the euro zone’s third largest economy, and Italy’s borrowing costs shot above a “red line” of 7 percent.

On the other side hundreds of demonstrators gathered at government buildings on Saturday celebrating the imminent departure of Berlusconi, who has been Italy’s longest serving prime minister.