Silvio Berlusconi has resigned as Italian prime minister but is set to to return with a new government line-up in the next few days.
Berlusconi has formally stepped down and has been asked by the Italian president, Carlo Azeglio Ciampi to choose a new cabinet.
A fresh government line-up with reshuffles in key economic portfolios is expected to see Berlusconi return to the helm next week.
The leader of the Forza Italia (FI) party will return to then return to complete his government mandate in 2006.
Ciampi is then expected to reappoint Burlusconi after he realigns his cabinet in consultation with his coalition partners.
"In theory, he could refuse to reappoint Mr Berlusconi. But pragmatically speaking, he will choose the person with a parliamentary majority, which is Mr Berlusconi", an Italian government contact said.
It will be EU business as usual in the meantime, with Italy sending the current transport minister to a council of ministers today.
The crisis has been triggered by a humiliating rout for Berlusconi during regional elections on April 3.
His right-wing coalition has been Italy’s longest serving administration since the Second World War.
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