The Italian Prime Minister Silvio Berlusconi has announced his intention to resign, but he says he won't go until after the Italian parliament has approved a package of reforms to

shore up

Italy's economy, which is badly affected by the eurozone debt crisis. Alan Johnston reports from Rome.

Silvio Berlusconi has confirmed that he intends to resign. Speaking on television, he said that he would step down after parliament accepts a raft of economic reforms that he's proposed. These are expected to go before parliament in about two weeks' time. There's been speculation in Rome that an interim government of

technocrats

might be

ushered

in if Mr Berlusconi's administration were to fall, but he clearly opposes any such step. Mr Berlusconi said that in his view fresh elections were the only way forward.

Greek politicians have been locked in a second day of

wrangling

as they try to form a unity government. Reports suggest a former vice president of the European Central Bank, Lucas Papademos, is likely to become the next prime minister. The new administration will have to implement more tough austerity measures.

The United Nations nuclear watchdog, the IAEA, says there are indications that Iran has carried out activities described as relevant to the development of a nuclear explosive device. In its latest report on Iran, which has just been released to member states, the IAEA gives a wide-ranging picture of research and development work in Iran that suggests military nuclear aims. James Reynolds has more.