Premier Silvio Berlusconi promised to resign after parliament passes economic reforms demanded by the European Union, capping a two-decade political career that has ended with Italy on the brink of being swept into Europe’s debt crisis. Hit the jump to read the rest of the story.
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Italian President Giorgio Napolitano met for about an hour with Berlusconi after the premier lost his parliamentary majority during a routine vote earlier Tuesday. In a statement, Napolitano’s office said Berlusconi had promised during the meeting to resign once the economic reforms have passed parliament.

A vote on the measures is planned for next week.
Earlier Tuesday, Berlusconi lost his majority in Parliament, increasing the pressure for him to resign to calm markets roiled by Italy’s inability to reform its economy.
In a closely watched vote, the Italian parliament approved the 2010 state accounts, but dealt Berlusconi a withering blow by revealing that he no longer commands enough support to govern much longer.
Berlusconi’s government is under intense pressure to enact quick reforms to shore up Italy’s defenses against Europe’s raging debt crisis. However, a weak coalition and doubts over Berlusconi’s leadership have ignited market fears of a looming Italian financial disaster that could bring down the 17-nation eurozone and shock the global economy.
Late Tuesday after the humiliating vote, the 75-year-old leader met with President Giorgio Napolitano, who can dissolve parliament and call early elections. If Berlusconi resigns, Napolitano could tap a caretaker leader to try to govern until an early election or try to seek a government with broad support.
Tuesday’s routine vote garnered 308 votes of approval and none against in the Chamber of Deputies. But 321 deputies abstained from voting — most from the opposition center-left — a tactic that laid bare Berlusconi’s shrinking hold.
Berlusconi’s margin was eight shy of the 316 votes he needs to claim an overall majority in the 630-member chamber. Next week, the government has a confidence vote on economic reforms that were demanded by the European Union. Without an outright majority in that vote, Berlusconi would be forced to resign.
“Today’s vote was a clear confirmation that the ruling coalition has lost its majority, meaning that chances that Berlusconi will lose the confidence vote are very high,” said Unicredit economists Chiara Corsa and Loredana Federico.
Berlusconi scrutinized the tally after the vote, trying to figure out who had abstained, and later huddled at his office with his top adviser.

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