The Italian parliament on Saturday approved the economy stabilization law which clears the way for the formation of the temporary government and resignation of Prime Minister Silvio Berlusconi.
Berlusconi said earlier this week he would resign after the government finally approves the new law that includes among others, labor reform proposals, aimed at increasing employment among women and young people, and a sell-off of state-owned assets and agricultural land.
Berlusconi, who is believed to be replaced by the former European Commissioner Mario Monti, is expected to hand in his resignation to President Giorgio Napolitano later on Saturday.
Italy's state debt stands at about 1.9 trillion euros ($2.6 trillion). Many analysts suspect the county's debt problem is simply too big to bail out.
