BBC News with Neil Nunes

The Italian President Giorgio Napolitano has tried to reassure the world's financial markets that his country will be able to pay its massive debts. The financial crisis in Italy, one of the world's largest economies, has deepened with the key interest rate on government bonds rising to 7%. That's the point at which several much smaller eurozone countries had to ask for international bailouts. President Napolitano called for the country to find a renewed sense of responsibility and cohesion.

"We must act in order to depart urgently today from a very dangerous squeeze on the titles of our state debt on the financial markets and on the conditions of our banks."

The president said Italy would pass a new financial stability law within days and the Prime Minister Silvio Berlusconi would then fulfil his promise to resign.

Politicians in Greece have failed to reach an agreement on a new prime minister after three days of intense wrangling. From Athens, here's Mark Lowen.