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Berlusconi resigns as Italian prime minister

Tony Gentile / Reuters

Italian Prime Minister Silvio Berlusconi is seen in his car as he arrives at Chigi palace in Rome, Italy, Nov. 12.

Gabriel Bouys / AFP - Getty Images

A woman holds a placard reading "finally"in front of Palazzo Chigi, Italy's Prime Ministry on November 12, 2011 in Rome. Italian Prime Minister Silvio Berlusconi was set to resign the same day after a parliamentary revolt and a wave of market panic that has shaken the eurozone, leaving behind an uncertain political future.

Filippo Monteforte / AFP - Getty Images

An unidentified deputy sits in an empty Italian Lower House before a debate to approve the last package of economic reforms in Rome, Italy, Nov. 12. Prime Minister Silvio Berlusconi was set to resign on Nov. 12 after dominating Italian political life for 17 years, as lawmakers prepared to give final approval to a package of key economic reforms. Berlusconi has said he would go once the measures he promised to the European Union were adopted in parliament after market turmoil raised fears Italy could drag Europe into an unprecedented crisis.

According to AP:

Former European Commissioner Mario Monti was expected to be given the task of trying to form a new administration to face a widening financial crisis which has sent Italy's borrowing costs to unmanageable levels. 

Alessandro Profumo, the former head of Italy's largest bank Unicredit, said he fully backed Monti.

"We don't yet have a new government in Italy and we have to wait, but I'm sure if Mario Monti will be appointed he will do whatever is necessary in order to restore the confidence of the financial markets in Italy," he told Reuters in Moscow.

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