by Calculated Risk on 11/12/2011 04:12:00 PM

From the WSJ: Italy Passes Budget; Berlusconi Resigns

Italian Prime Minister Silvio Berlusconi resigned on Saturday , the country's president's office said, paving the way for the formation of an interim government tasked with pulling Italy from the grip of the European debt crisis.
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The move came after Parliament passed key economic measures that preface a much tougher round of austerity likely to be carried out under the emergency administration.

From the NY Times: Berlusconi’s Resignation Ends a 17-Year Era for Italy

The front-runner to guide a new government appears to be Mario Monti, 68, a former European commissioner and a well-respected economist with close ties to European Union officials. On Wednesday, Mr. Napolitano named Mr. Monti a senator for life, an unexpected move seen as a prelude to receiving the mandate to form a government.

In a sign of intense deal-making ahead of a delicate political transition, Mr. Monti met with Mr. Berlusconi and two of his close advisers on Saturday at the prime minister’s office.

And the beatings will continue until morale improves ...