Italy approves economic reforms

Italy’s senate has approved crucial economic reforms that were demanded by the European Union.

The passage is the first step in paving the way for Prime Minister Silvio Berlusconi to resign.

Experts say Berlusconi may resign as early as this weekend and a transitional government would be formed instead.

The vote took place after respected economist Mario Monti, widely expected to become the interim prime minister was welcomed with applause in the senate chamber, where he was officially designated senator for life.