BBC News with Sue Montgomery
The Italian economist and former European Commissioner Mario Monti has been asked to form a new technocratic government to try to tackle Italy's massive debt. Mr Monti was appointed caretaker prime minister after a day of talks between President Giorgio Napolitano and political leaders. Alan Johnston reports from Rome.
Italy's head of state, President Giorgio Napolitano, spent the day consulting party leaders. And when the talks ended, as expected, he turned to the former European Union Commissioner Mario Monti. He's been asked to form an interim technocrat-style administration. By no means everybody in Italian politics likes the idea of an unelected leader taking charge, but Mr Berlusconi's supporters are conditionally going along with the plan to install Mario Monti, and he has support, too, from many other quarters.
Mr Monti's challenge will be to enact a stringent austerity plan aimed at tackling Italy's massive debt. Speaking in a brief statement after his confirmation as prime minister, he said he would carry out the task with urgency.
"The country has to overcome this challenge. Italy must be an element of strength and not weakness within the European Union. We will aim at solving the financial situation, resume the path of growth and social fairness. We want to build a future of dignity and hope for our children."
The German Interior Minister Hans-Peter Friedrich has warned of a new form of far-right terrorism after police linked a neo-Nazi gang to the killing of nine entrepreneurs from Germany's Turkish and Greek communities. Victims included kebab stall owners and flower sellers. Amid criticism that it had taken more than 10 years to uncover the link, he said he'd set up a working group to improve the domestic intelligence agency's procedures.