Silvio Berlusconi, Italy's prime minister. Chris Ratcliffe/BloombergBerlusconi to Resign After New Budget Is Approved -- Wall Street Journal
ROME—Italian Prime Minister Silvio Berlusconi has reached an agreement with President Giorgio Napolitano to resign after Parliament approves the government's 2012 budget, the president's office said on Tuesday, clearing the way for Italy's head of state to form a national unity government or call elections.
The move came after Mr. Berlusconi's government failed to muster a majority during a key vote held in Parliament on Tuesday. Mr. Berlusconi's governing coalition garnered 308 votes, seven votes shy of a majority needed in the 630-member lower house of Parliament. That means the parliament approved the routine budget bill that was on the ballot, but only because 321 lawmakers abstained from voting.
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