BBC News with Iain Purdon

The outgoing Italian Prime Minister Mario Monti, appointed last year to prevent Italy coming to the Eurozone debt crisis will head an alliance of centrist parties in the country's upcoming elections. At a news conference, Mr Monti said he would prepare to lead a coalition supporting his reform agenda. David Willey reports from Rome.

Mr Monti who resigned earlier this month after 13 months in office, as head of the government of technocrats has now clearly thrown his head into the political ring in the general election due to be held at the end of February. After talks with leaders of the Center parties, Italy's former European commissioner made it clear that he will seek a second term. The election will be a three-way race between the Democratic Party, leading the polls at the moment, Silvio Berlusconi's Freedom Party which is trailing for other hand, and Mr Monti's center grouping which observers say could attract up to 15% of the vote.

President Obama has begun meeting Congressional leaders at the White House to try to reach a last minute deal to prevent the US falling off what's been dubbed the fiscal cliff. But there is growing doubts that the trigger for hundreds of billions of dollars in automatic tax rises and spending cuts can be avoided before the deadline of new year's day. From Washington here's is Zoe Conway.

There is increasing pessimism in Washington that the American can be safed from going over the fiscal cliff. Many people believed that Democrats and Republicans are too far apart on taxes and spending to reach a deal. And there is concern that apparent lack of urgency. The House of the Representatives is not backing session until Sunday night. The senate is open for business but it's not debating the fiscal cliff.