Italian Prime Minister Silvio Berlusconi has formally submitted his resignation, marking the end of one of the most turbulent and controversial political eras in modern Italian history. His decision follows growing pressure from financial markets, European partners, and members of his own coalition amid fears that Italy’s debt crisis could spiral out of control.
Political crisis deepens
Berlusconi tendered his resignation to President Giorgio Napolitano at the Quirinal Palace in Rome after a week of mounting speculation. The move came shortly after Parliament approved key austerity measures demanded by the European Union, designed to restore confidence in Italy’s public finances. Crowds gathered outside the presidential residence, some jeering and others celebrating as the news broke.
Markets and EU relief
The announcement was greeted with immediate relief in European capitals and financial markets, where confidence in Italy’s ability to implement economic reforms had sharply declined. The yield on Italian government bonds, which had reached record highs earlier in the week, eased slightly following the confirmation of Berlusconi’s departure. EU leaders welcomed the move, describing it as a necessary step toward stability and reform.
End of an era
Berlusconi’s resignation ends nearly two decades of dominance over Italian politics. The media tycoon, often described as both charismatic and polarising, has faced numerous scandals and legal battles throughout his career. Despite repeated comebacks, this final political collapse underscores how the eurozone crisis has reshaped the continent’s political landscape, forcing even the most resilient leaders to bow to economic realities.
Next steps for Italy
Attention now turns to the formation of a new government, likely led by technocrat Mario Monti, who is expected to guide the country through critical fiscal and structural reforms. The incoming administration will face the daunting challenge of restoring investor confidence, stabilising public debt, and maintaining social cohesion amid deep austerity.
Newshub Editorial in Europe – 12 November 2025
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