Italian prime minister Silvio Berlusconi has rejected rumours that he is set to resign, calling the claims "baseless".
Berlusconi was said to have been preparing to stand down on Monday, before writing on his Facebook page: "Rumours of my resignation are baseless". Former Italian minister and editor of Foglio newspaper, Giuliano Ferrara, hastened exit talks by earlier stating: "That Silvio Berlusconi is about to resign is clear. It is a question of hours, some say minutes".
Interior minister Roberto Maroni said that Berlusconi lacks the majority in Italian parliament to push through economic reforms and his departure would be the second EU casualty in two days after Greek PM George Papandreou agreed to stand down on Sunday.
Berlusconi has been under mounting pressure as Italian borrowing costs rose, compounding fears that the European economic crisis is worsening. He has faced calls for a vote of no confidence, which would be his 54th since coming to power in May 2008.
Berlusconi narrowly survived his last vote of no confidence on 14 October, gaining the support of 316 Italian MPs- just seven more than the required majority of 309. Any defeat at a vote of no confidence would force the embattled leader to step down.
Italy, the third biggest economy in the eurozone, has debts of more than £1 trillion. A £46 billion austerity package was approved by Burlusconi's government on 14 September to steady the turbulent Italian economy.
