Italian Prime Minister Silvio Berlusconi has announced to resign as soon as next week after parliament passes economic reform policies that Italy promised to implement to the European Union.

The announcement came as his government failed to secure a majority in parliament amid Italy’s deepening financial turmoil.

Earlier on Tuesday, Berlusconi's government won a budget vote due to abstention by the opposition. However,
the European Union is concerned about Italy’s financial condition as the country’s debt volume stands at around one-point-nine trillion euros or two-point-six trillion U.S. dollars. The interest rate on Italian ten-year bonds reached almost seven percent.