Italian PM Prodi Resigns

The fat lady has sung for Italian PM Romano Prodi. After losing a confidence vote in the Senate, Prodi resigned today, the BBC reports. President Giorgio Napolitano now has to make the decision of calling a snap election or appointing a caretaker government. Former PM Berlusconi's center-right coalition would be likely to win an upcoming election, say experts.

Before the vote, Prodi pleaded for the Senate not to create a "political vacuum" by defeating his government. "Stopping the government's work is a luxury Italy cannot afford," said Prodi. Meanwhile, most leaders agree that a major reform of Italy's electoral system is needed, as the current one grants too much power to relatively tiny parties. (More Italy stories.)