16 Nov 2011

Monti says he's formed new Italian government

8:48 pm on 16 November 2011

Italian Prime Minister designate Mario Monti says he has succeeded in forming a new government and will present his appointments to President Giorgio Napolitano in a few hours.

Mr Monti, a former European commissioner, says he is confident that Italy would overcome its current crisis.

After two days of talks in parliament, Mr Monti has received the backing of all but one of the political factions.

He will go with a list of cabinet ministers, expected to be technocrats, already drawn up, the BBC reports, quoting Italian media.

Mr Monti has sought to reassure markets that Italy will make sacrifices to overcome its 1.9 trillion euros of public debt and restore economic growth.

Italy's cost of borrowing rose again past 7% during trading on Tuesday amid ongoing nervousness about its high level of debt.

The BBC reports crucially, the largest faction, the PDL - loyal to former Prime Minister Silvio Berlusconi - has backed the Monti plan.