Monti named to head new Italy government

Italy's president appointed former European Commissioner Mario Monti to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole euro zone. 

After a frenetic weekend during which parliament passed the reforms and Prime Minister Silvio Berlusconi stepped down to the jeers of hostile crowds, President Giorgio Napolitano asked Monti to form a government, expected to be composed largely of technocrats.

"The president of the republic ... has received Senator Mario Monti and conferred a mandate to form a government," said a statement from the presidential palace. 

The respected economist, made a life Senator last week, is likely to name around 12 ministers on Monday, political sources said. He will have declared support in parliament from opposition parties, centrists and Berlusconi's PDL party.

A process that normally takes several days or weeks was completed over the weekend as Napolitano raced to restore market confidence that collapsed disastrously last week. 

Following weeks of political uncertainty and growing calls from international partners for action to control its debt, Italy's borrowing costs soared to unmanageable levels last week, threatening a Europe-wide financial meltdown.

Markets calmed at the end of the week once it became clear that Berlusconi would go and Monti take his place. Rome will watch on Monday to see if the formal nomination will continue the positive effect on markets 

If he manages to secure sufficient backing in parliament, Monti will implement reforms agreed by Berlusconi with euro zone leaders to cut Italy's massive debt and revive a chronically stagnant economy.

However there are clear signs that he will face problems, with Angelino Alfano, secretary of Berlusconi's PDL party, saying there was "huge opposition" among some of its members to a Monti government. 

Alfano said after meeting Napolitano on Sunday afternoon, however, that the party -- which has been badly split by the crisis -- would support Monti.

But its agreement was conditional on the ministerial line-up and the policy program of the new government, which must be based on reforms promised to Europe by Berlusconi.