Berlusconi denies speculation he is quitting

ROME�? Two journalists close to Italian Prime Minister Silvio Berlusconi said he could resign as early as Monday, immediately boosting bond and stock markets.

Giuliano Ferrara, editor of the Foglio newspaper and a former minister seen as extremely close to Berlusconi, said on its website: "That Silvio Berlusconi is about to resign is clear. It is a question of hours, some say of minutes."

Franco Bechis, vice-director of the pro-Berlusconi Libero newspaper, said on Twitter Berlusconi would resign on Monday night or Tuesday morning.

However, Berlusconi said on his Facebook page that rumors of his resignation were unfounded.

1. Only on msnbc.com

   1. Mill's revival brings back blankets, US jobs
   2. Cain: I'm a Koch 'brother from another mother'
   3. FDA: Moldy applesauce repackaged by school lunch supplier
   4. Is Burma breaking out of China's embrace?
   5. Rock Center: Growing pains for ND boomtown
   6. Muslim cab drivers save Jewish bagel shop
   7. Migrants' woes: bed bugs, foul toilets, illness

Italy's borrowing rates spiked to a euro-era high on Monday, piling pressure on Berlusconi to resign and make way for a new government that could more forcefully push through desperately-needed economic measures.

Huge debts
Italy is the new focus of the eurozone debt crisis, as its debts are huge, growth is slow, and the country would be too expensive to bail out.

Story: Greek PM, opposition leader reach deal

Investors want the government to urgently pass measures to boost growth and cut debt, but Berlusconi's majority is weakening by the day.

The yield on the country's ten-year bonds jumped another 0.33 of a percentage point on Monday to 6.58 percent, its highest level since the euro was established in 1999 and closer to the 7 percent threshold that has seen Ireland and Portugal accept bailouts.

There is growing concern that Berlusconi is the problem because he no longer commands enough loyalty among lawmakers to ensure the quick passage that European and international financial officials say Rome must achieve to avoid falling victim to a dramatic debt crisis like that bringing Greece to its knees.

The government has suffered defections from his coalition and the possibility of early elections is growing.

Public administration minister Renato Brunetta, a Berlusconi loyalist, acknowledged in a TV appearance Monday that the government has a "numbers problem" in parliament and if a majority is lacking then "everybody goes home and one votes."

Interior Minister Roberto Maroni agreed, adding "it is useless to persist."

But Berlusconi has remained defiant, insisting Sunday he still commands enough support in Parliament to enact urgently needed measures to save Italy from financial disaster.

"We maintain that there are no alternatives to our government until 2013," when elections are due, Berlusconi said, addressing a political gathering by audio hookup.

Reuters and The Associated Press contributed to this report.

Source: http://www.msnbc.msn.com/id/45188323/ns/world_news/

christian world news daily christian world news today cnn world news cnn world news 2011 cnn world news africa