The Italian senate is due to vote on austerity measures in the hope of abating the eurozone crisis.
A new government is expected to be announced over the weekend, formally ending the era of Silvio Berlusconi.
Mario Monti, the former European commissioner, is favourite to replace the outgoing prime minister, despite last minute wrangling from members of Berlusconi’s Freedom People party.
Berlusconi promised to resign on Tuesday, following the passing of the tough economic measures aimed at stabilising Italy’s economy.
The Chamber of Deputies will pass the measures on Saturday, allowing President Giorgio Napolitano to ask Monti to form a government before the markets open on Monday.
According to The Guardian, Napolitano briefed Monti on Thursday night. It is reported that Napolitano spoke to President Obama to assure him that the much-needed austerity cuts would be passed quickly.
Addressing finance ministers from the members of the Asia-Pacific Economic Co-operation (Apec) group, US Treasury Secretary Timothy Geithner said “the crisis in Europe remains the central challenge in global growth.”
Geithner also urged Europe to put in place a "plan" to sort out its debt crisis.