Controversial Silvio Berlusconi to resign

Silvio Berlusconi finally decided to quit. Photo: googleimages

The announcement was made by Italian President, Giorgio Napolitano, after a meeting he had with the troubled Prime Minister on Monday.

“First we settle the law, then I quit,” Berlusconi would have said during the meeting with President Napolitano, which lasted nearly an hour, reports Corriele della Sera.

However, Berlusconi left the presidential palace without providing statements or announcing his resignation, according to BBC News.

Italian Presidency issued a press statement, which shows that once the austerity measures are implement, the Prime Minister will resign. “Silvio Berlusconi told the head of state thathe is aware of the implications of the outcome of the vote in the Chamber of Deputies. He also expressed concern for the need to provide timely responses to our European partners, by approving the law on financial stability. As soon as this law will be adopted in plenary, the Prime Minister will present his resignation”.
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The presidential statement also reveals that after President Napolitano will begin consultations with all political parties in order to appoint a new prime minister.

The final vote on the budget law for 2012, which includes austerity measures promised by Berlusconi to eurozone leaders will be given in mid-November.

Italy is threatened by an extremely delicate situation following greek crisis, with the liabilities and deficits being almost as high as Greece’s. However unlike Greece case, the European leaders can not afford a loan for Italy because the European Financial Stability Fund does not have enough money, Italy being the third largest economy in the euro area.

After the vote in the Chamber of Deputies on Tuesday, Italy’s borrowing costs have exceeded a new record peak, reaching 6.76 percent, slightly below 7% level which determined Portugal and Ireland to ask for loans from the International Monetary Fund and the European Union.