Italian Prime Minister Silvio Berlusconi said Tuesday he will step down after parliament passes economic reforms designed to stave off financial disaster, after it became clear he had lost his hold on his coalition government.
Berlusconi won a routine budget vote Tuesday during which parliamentarians approved the 2010 state accounts. However, parliamentarians also used the vote to signal they will no longer support the Italian leader's coalition government.
While 308 parliamentarians voted in support of Tuesday's budget measure and none voted against it, some 321 abstained from voting, signalling Berlusconi's loosening grip on power.
The vote put him eight shy of the 316 needed to secure a majority in the 630-member chamber.
When it became clear that the embattled Berlusconi had lost his majority, he met with President Giorgio Napolitano for about an hour.
After the meeting, Napolitano's office issued a statement saying Berlusconi had vowed to resign when parliament passes the much-needed austerity measures.
In a tone that deviated from his usual defiant blustering, Berlusconi said late Tuesday his offer was the right decision because "things like who leads or who doesn't lead the government" are not as important as doing "what is right for the country."
He said he would have preferred to call early elections, but said that decision is up to Napolitano.
Last month, the European Union gave Italy a Nov. 15 deadline to enact economic reforms.
Rachel Donadio, Rome bureau chief for the New York Times, said Tuesday Berlusconi's resignation offer is "conditional."
"Any resignation on the part of Berlusconi is quite remarkable. He is not someone who is going to go down without a fight," Donadio told CTV News Channel in a telephone interview from Rome.
"If parliament can rally, put together a package of measures and approve those measures by the 15th, I guess he will make way."
A confidence vote on proposed austerity measures is scheduled for next week.
"Today's vote was a clear confirmation that the ruling coalition has lost its majority, meaning that chances that Berlusconi will lose the confidence vote are very high," said Unicredit economists Chiara Corsa and Loredana Federico.
After the vote, opposition leader Pierluigi Bersani called on Berlusconi to step down.
"This government does not have the majority," he yelled. "If you have a crumb of sense in front of Italy, give your resignation."
As Bersani spoke, Berlusconi could be seen writing the words "traitor" and other notes about those who abstained from voting on bits of paper.
Before the vote, one of the prime minister's top allies, Umberto Bossi of the Northern League, said he, too, had called on Berlusconi to step aside.
Italy, the eurozone's third-largest economy, is in debt to the tune of C$1.9 trillion. Because it represents about 17 per cent of the eurozone's gross domestic product, it is viewed as too large to receive a bailout package from fellow European countries as Greece did earlier this year.
On Tuesday, Italy's borrowing rates soared to their highest point ever, 6.77 per cent. Rates over seven per cent are considered unsustainable.
Berlusconi has remained in office for nearly two decades -- serving as premier three times in the last 17 years -- despite a series of sex scandals and allegations of corruption.
However, he has lost the confidence of elected officials and business leaders alike over his handling of the economy.
"(Italy) cannot go forward" with the soaring borrowing rate spread," said Emma Marcegaglia, who leads an influential Italian business lobby. "The country cannot stay in these conditions."
