Italian PM Monti to Resign, Berlusconi Prepares Comeback

Italian PM Mario Monti will file his resignation after the adoption of Italy's 2013 state budget, announced the office of the Italian President.

This decision was reached after consultations between Monti and President Giorgio Napolitano following a weakening of political support for Monti's technical cabinet.

Parliamentary representatives of former Italian PM Silvio Berlusconi's People of Freedom party have made it clear that they no longer will support the cabinet.

PM Monti himself has said that his decision to resign is "irreversible."

The budgetary package is expected to be passed in parliament before the end of the year, with new general elections to be probably scheduled by Napolitano the end of February.

On his part, Berlusconi has made it clear that he will seek to gain Italy's PM position for a fifth time, months after he withdrew from politics over large corruption and private life scandals.

"It is with sorrow that I am returning to public service. An again I am doing it out of a sense of duty," said Berlusconi.

The former PM added that his party will support the Monti budget in parliament.

Commenting on the events, European Commission President Jose Manuel Barroso said he hopes the imminent elections in Italy will not impede the pace of reforms in the financially troubled country.