Prime minister-designate Mario Monti will form a new Italian government tomorrow to face a crisis that has brought Italy to the brink of economic disaster and endangered the entire euro zone.
A statement from the presidential palace announced that Mr Monti, appointed only on Sunday, would meet head of state Giorgio Napolitano tomorrow morning to confirm he can form a government. He is expected to announce a cabinet composed mainly of technocrats.
Mr Monti has completed the process of forming a government in less than three days, much less than normal, as Italy races to ward off a major financial and political crisis that has pushed its borrowing costs to untenable levels.
The new administration led by former European Commissioner Mr Monti must push through a tough austerity programme demanded by European leaders to restore shattered confidence in Italy.
Underlining the pressure on Mr Monti to act fast was renewed market turmoil , with yields on Italy's 10-year bonds climbing to over 7 per cent today, the level at which Greece and Ireland were forced into bailouts.
Emma Marcegaglia, head of employers association Confindustria, told reporters after meeting Mr Monti: "We said we will support his government very much. We think this government is the last chance for Italy to exit from this situation of emergency".
Mr Monti's chances were considerably boosted earlier by backing from the PDL party of Silvio Berlusconi, who was forced to step down on Saturday by the crisis.
Angelino Alfano, secretary of the centre-right PDL, told reporters: "We think that the efforts of professor Monti are destined to have a good outcome."
Backing from the PDL, Italy's biggest party, was significant because many of its members had until now opposed the predominantly technocrat government Mr Monti is putting together.
Mr Monti's new government must have strong parliamentary backing to implement what are likely to be unpopular austerity reforms. Any failure or delay in his efforts would cause a devastating new assault from financial markets.
Reuters