The Italian Prime Minister Silvio Berlusconi has announced his intention to resign, but he says he won't go until after the Italian parliament has approved a package of reforms to shore up Italy's economy, which is badly affected by the eurozone debt crisis. Alan Johnston reports from Rome.

Silvio Berlusconi has confirmed that he intends to resign. Speaking on television, he said that he would step down after parliament accepts a raft of economic reforms that he's proposed. These are expected to go before parliament in about two weeks' time. There's been speculation in Rome that an interim government of technocrats might be ushered in if Mr Berlusconi's administration were to fall, but he clearly opposes any such step. Mr Berlusconi said that in his view fresh elections were the only way forward.

Greek politicians have been locked in a second day of wrangling as they try to form a unity government. Reports suggest a former vice president of the European Central Bank, Lucas Papademos, is likely to become the next prime minister. The new administration will have to implement more tough austerity measures.