Italian Prime Minister Silvio Berlusconi has confirmed he will step down following widespread pressure over Italy’s economic crisis. Berlusconi says he will resign after implementing economic reforms demanded by the European Union. With the third biggest economy in the eurozone, the economic crisis facing Italy is considered to be far more dangerous than that in Greece. James Walston, a professor at the American University in Rome, said Berlusconi had lost the support of his closest allies.

James Walston: “Even his closest advisers have realized that Berlusconi has lost his magic. The sort of problems which Italy is facing are ones which Berlusconi is both unwilling and incapable of dealing with. And they, from close advisers and collaborators like [Under-Secretary Gianni] Letta and [Secretary-General of the People of Freedom Party Angelino] Alfano to all sorts of back-benchers, have decided that they do not want to be part of a government which causes major problems, and possibly catastrophic problems, for Italy and for the European Union.”