Italian PM Berlusconi announces long-awaited resignation after EU-demanded reforms

Italian Prime Minister Silvio's Berlusconi's announcement he would quit, most probably next week, over the reforms imposed by the EU has triggered a growth in global capital markets- an unusual response from the capital markets over high level changes in the country. At home, the Italian premier (in picture) lost his parliamentary majority during a routine vote on Tuesday. Berlusconi has recently told Italian president Giorgio Napolitano that he would quit after the Italian parliament will pass the set of EU-imposed measures to combat debt.

Meanwhile, tens of thousands of demonstrators have gathered in Rome asking for Silvio Berlusconi's resignation. The Prime Minister's popularity ratings have hit a record low of 22 percent, according to a recent poll. International commentators have been asking for Berlusconi's resignation for some time. Media reports suggest Italy has been paying large premiums on risk due to the international distrust in Berlusconi himself. A recent comment published by the Financial Times has actually asked Berlusconi to resign: 'In God's name, go!'

In an previous letter to the EU, Berlusconi pledged to raise the retirement age, ease rules on firing workers and accelerate state asset sales. The Italian Prime Minister started his political career 20 years ago. He has been in office three times, between 1994 and 1995, between 2001 and 2006 and since 2008. He has held several other ministerial seats in the meantime. He is also known for his investments in the real estate industry and in media, as well as for making headlines in tabloids for his promiscuous relationships and infidelities. Corina Saceanu, corina@romania-insider.com (photo source: Italian Govt)