Italy and Greece are actively working to stabilize their political situation as they struggle to avoid default.

With fears rising that Italy is nearing default, the political sector is actively seeking a successor for Prime Minister Silvio Berlusconi.

Currently, Bocconi University President Mario Monti is considered the favorite to replace Berlusconi. Monti served as European Commissioner in charge of the Internal Market, Financial Services and Taxation from 1995 to 1999 and then as European Commissioner for Competition for six years from 1999.

In Greece, a new 15-week coalition government will be launched on Friday. Earlier on Thursday, former European Central Bank Vice President Lucas Papademos was picked to head the interim government. Papademos was an active sponsor of Greece’s entry into the euro zone.