8 November 2011 Last updated at 14:01 ET
Italian Prime Minister Silvio Berlusconi will resign after key economic reforms have been approved, the country's president says.
Mr Berlusconi's decision follows a vote on the budget in parliament, in which he appeared to lose his majority.
Both allies and opponents have been urging him to step down, as Italy's debt crisis grows.
Borrowing rates have shot up in recent days, raising concerns over whether Italy can service its debts.
Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-europe-15646536
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