Italy's prime minister-designate Mario Monti said today that his first day of talks on forming a new government had been constructive and he hoped to put together an administration that could take the country through to the next scheduled elections in 2013.
"It's obvious that parliament can decide at any time that a government does not have its confidence," he told a news conference, but added that he would not accept setting other time limits on the lifetime of the government.
"If a date was set beyond that time horizon, this predetermination would remove credibility from the government."
Mr Monti began talks with political parties today before separate meetings with trade unions and employers tomorrow, as he rushes to appoint what is expected to be a relatively small cabinet made up of technocrats from outside parliament.
Mr Monti went to work after a frenetic weekend of political activity, in which Italy's parliament approved a package of economic reforms agreed with European leaders, Mr Berlusconi resigned and president Giorgio Napolitano appointed the respected international figure as head of a new government.
"Monti spoke about a significant programme with many sacrifices," Francesco Nucara, a lawmaker from one of the myriad tiny parliamentary groups involved in the talks, said after meeing the prime minister designate.
The speaker of the lower house, Gianfranco Fini, said he expected Mr Monti to seek a confidence vote in parliament to confirm support for his new government by Friday.
A rally on financial markets sparked by the appointment of respected European technocrats in Rome and Athens soon stalled. Analysts warned that daunting obstacles could hinder the decisive action needed to revive their ailing economies.
Italy had to pay a euro-lifetime record yield of 6.3 per cent to sell five-year bonds with investors wary of buying its debt until prime minister-designate Mario Monti can undertake profound economic reforms.
Mr Napolitano called for an extraordinary national effort to support Mr Monti and win back the confidence of international markets, noting that Italy had to refinance some €200 billion of bonds by the end of April.
But once the initial boost from his appointment has passed, Mr Monti will face a major challenge navigating the treacherous waters of Italian politics with clear signs of mistrust already emerging from the centre right.
"It doesn't end here" read a headline in Libero, a fiercely pro-Berlusconi daily which said that "the Left and its newspapers may have uncorked the champagne too early".
Mr Monti, a convinced free marketeer with a record of successfully taking on powerful corporate interests during his decade in Brussels, is expected to outline a policy programme in line with demands made by Italy's European partners.
"It's very important that this government takes shape quickly and starts work immediately with fundamental reforms to return to growth and balance the budget," Emma Marcegaglia, head of the Confindustria business lobby, told reporters.
Mr Monti has spoken frequently of his support for controlling public finances and for pro-market policies such as boosting competition, opening up closed professions and lowering the tax burden on employment.
However pushing though painful reforms such as raising the retirement age for those on so-called full-service or seniority pensions and loosening job protection measures will test the extent of the non-elected government's support both in parliament and outside.
Other possible measures such as imposing a wealth tax on privately owned assets including first homes also risk strong opposition from the right.
The next election is not due until 2013 but there are widespread predictions Mr Monti will not last until then, making way for polls once he passes the reforms promised to Europe.
Top European Union officials and German chancellor Angela Merkel welcomed signs of an end to the weeks of uncertainty, with Ms Merkel saying the approval of a reform package in parliament on Saturday was "heartening".
Mr Monti could visit either France or Germany to meet Ms Merkel and French president Nicolas Sarkozy within a week of a new government being in place, according to one person close to the situation.
The European Union will continue monitoring measures taken in Rome and Mr Monti will need to secure the support of Mr Sarkozy and Ms Merkel, both of whom were openly exasperated with Mr Berlusconi's repeated unfulfilled promises of reform.
Reuters