Berlusconi to resign

Italian PM Silvio Berlusconi has agreed to resign following the adoption of key economic reforms promised to the European Union, the Italian president's office said in a statement on Tuesday.

"Once this commitment has been carried out, the prime minister will submit his resignation to the head of state," read the statement, which came after consultations between Berlusconi and President Giorgio Napolitano.

Napolitano will then "proceed with traditional consultations with maximum attention to the positions and proposals of every political force -- those of the majority from the 2008 elections as well as the opposition," it added.

Napolitano's office said Berlusconi had shown "his awareness of the implications of the results of today's vote" as well as "concern for the urgent need to give prompt answers to the expectations of European partners."

Berlusconi's centre-right coalition earlier on Tuesday failed to obtain an overall majority in parliament on a key vote as Europe ratcheted up the pressure for Italy to move quickly to put its public finances in order.Media agencies