Italy Moves Closer to New Government

Now that Greece has picked a new government, the next troubled European country, Italy, looks to be following in its footsteps. The country on Thursday moved closer to forming a new government when current Prime Minister Silvio Berlusconi’s resignation is official. Berlusconi is expected to formally step down on Monday, and a coalition government of technocrats, most likely led by former European commissioner Mario Monti, will take over. Berlusconi had pledged to step down as soon as the Italian Parliament reached a deal implementing new austerity measures required if Italy receives a bailout package from the European Union. But on Wednesday, Italian bond yields hit 7.4 percent, a point considered unsustainable, and the negotiations began moving faster. Tthe Senate is expected to approve the new measures Friday.