Italians nervous, sceptical about Berlusconi quitting

"He's up to something," said 57-year-old office worker Mirella Maturani. "If he quits tomorrow, then I'll be happy," she said, adding that she felt his immediate departure was the first step needed to solve Italy's economic woes.

Berlusconi has said he will step down once parliament approves reforms demanded by European partners, which will spell the end of his 17-year dominance of the country and lead to a change of government that many Italians say is long overdue.

Antonella Saddi, 49, and her friends said they had greeted the news of the 75-year-old billionaire media tycoon's imminent resignation with a Mexican wave.

But she said she was worried about how long it would take to form a new government.

She said she thought a technical interim government was needed to implement reforms quickly, but on Wednesday there were few signs of a swift appointment of a new administration. Berlusconi said he did not expect an election until early 2012.

Italian borrowing costs rose close to breaking point on Wednesday as Berlusconi's promise failed to raise optimism about the country's ability to deliver long-promised economic reforms.

The debt crisis in the euro zone's third largest economy has fuelled concerns among Italians about their jobs, life savings, and pensions.

Rising consumer prices, stagnating wages and growing numbers of unemployed friends and relatives are among the problems that worry people most in Italy, which has been one of Europe's most sluggish economies for more than a decade.

But younger people also said they saw an opportunity in Berlusconi's departure for cultural renewal, hoping that Italians will develop a greater sense of civic duty.

Few can think of strong candidates to replace Berlusconi.

"I hope that the intellectual Italians will be involved finally in governing the nation, so all these difficult issues can be handled by a capable person," said Vittorio Casadei, a 41-year-old accountant from Rome.

"Like Umberto Eco, for example," he said of the author of novels such as The Name of the Rose and Foucault's Pendulum.

"He is very good at explaining our problems in the newspapers, but I don't think he has ever tried to tackle these problems directly. We need people like this to take on the responsibility and give confidence back to Italians."

A French government spokesperson said on Thursday that Italy must take credible measures to reduce its budget deficit quickly and a change of government is necessary in order to push the measures through to make sure they are applied.

"We need a credible plan, a plan that will be seen as a deal that Italy will hold to," Valerie Pecresse told Canal+ television. "I think it's urgent, and at the same time I think that means a new Italian government."