Italy PM Mario Monti announces plan to resign

Hours earlier, former Prime Minister Mr Berlusconi said he will run for office again next year.

Mr Berlusconi said he felt a "responsibility" to step back into the arena because of the severity of the country's economic problems.

The BBC's Alan Johnston in Rome says that Mr Berlusconi's critics will argue he is only interested in being in a powerful enough position to protect his own business and other interests.