FILE - In this Tuesday, Oct. 19, 2004 file photo, European Union Commissioner for Competition Mario Monti gestures while speaking during a media conference at European Commission headquarters in Brussels. Italy's president has unexpectedly named Wednesday, Nov. 9, 2011, as a senator-for-life Mario Monti, the former European competition commissioner who is widely considered to be a top contender for the Italian premiership, now that Silvio Berlusconi has pledged to resign soon. The surprise move Wednesday night could be a prelude to Monti's getting the nod to head the next government. President Giorgio Napolitano's office announced he had chosen Monti, who now runs prestigious Bocconi University in Milan, for the honor. Senators-for-life include notable figures outside of politics and have voting privileges in the Senate. (AP Photo/Virginia Mayo, File)
FILE - In this Tuesday, Oct. 19, 2004 file photo, European Union Commissioner for Competition Mario Monti gestures while speaking during a media conference at European Commission headquarters in Brussels. Italy's president has unexpectedly named Wednesday, Nov. 9, 2011, as a senator-for-life Mario Monti, the former European competition commissioner who is widely considered to be a top contender for the Italian premiership, now that Silvio Berlusconi has pledged to resign soon. The surprise move Wednesday night could be a prelude to Monti's getting the nod to head the next government. President Giorgio Napolitano's office announced he had chosen Monti, who now runs prestigious Bocconi University in Milan, for the honor. Senators-for-life include notable figures outside of politics and have voting privileges in the Senate. (AP Photo/Virginia Mayo, File)
FILE - In this May 8, 2008 file photo, Italy's new premier Silvio Berlusconi, left, listens to Italian President Giorgio Napolitano, during the swearing-in ceremony of Italy's 62nd postwar government in Rome's Quirinale Presidential Palace. Italy's president is seeking to reassure roiling markets that Premier Silvio Berlusconi will resign and says Italy will either have a new government or early elections soon. In a statement, Wednesday, Nov. 9, 2011, President Giorgio Napolitano said concerns about whether Berlusconi would actually leave office were completely unfounded. (AP Photo/Luca Bruno, File)
FILE - In this Monday, May 15, 2006 file photo, Giorgio Napolitano, accompanied by outgoing Premier Silvio Berlusconi arrives at the monument of the Unknown Soldier prior to reaching Rome's Quirinale Presidential Palace, after he was sworn in as Italy's 11th president. Italy's president is seeking to reassure roiling markets that Premier Silvio Berlusconi will resign and says Italy will either have a new government or early elections soon. In a statement, Wednesday, Nov. 9, 2011, President Giorgio Napolitano said concerns about whether Berlusconi would actually leave office were completely unfounded. (AP Photo/Riccardo De Luca, File)
ROME (AP) ? Market pressure on Italy eased somewhat Thursday after the president vowed to accelerate reforms to make way for Premier Silvio Berlusconi's resignation as early as this weekend and a bond sale went better than expected.
President Giorgio Napolitano assured skittish investors that Berlusconi will step down after reforms are passed ? likely by Saturday ? and he named respected economist Mario Monti senator for life in a move that puts him in line to run the next government.
Italy is under intense pressure to prove it has the political strength to enact measures to increase confidence in its ability to repay its debts, which stand at a huge 120 percent of economic output. But economic growth is weak and the government has been incapable of pushing through reforms to revive it over the past decade.
Italy's leading business newspaper summed up the growing sentiment with an enormous bold-faced headline: "Hurry Up."
Investors are worried that if Italy's borrowing rates remain too high for too long, it will be blocked out of financial markets and need rescue loans to repay its bondholders. That would be devastating for both the euro and the global economy.
The yield on the benchmark 10-year bonds dropped below 7 percent on Thursday after a bond sale went better than expected. The yield had spiked to almost 7.5 percent on Wednesday, topping the threshold that eventually forced Greece, Ireland and Portugal to seek bailouts. By midday Thursday it had eased back down to 6.94 percent.
Italy easily sold euro5 billion ($6.8 billion) in 12-month bonds at borrowing rates which were not as bad as expected. Investors asked for an interest rate of 6.087 percent to lend Italy the 12-month money. That's up sharply from 3.57 percent in the last such auction last month, but well below analyst expectations of 7 percent. Demand for the bonds was also strong, almost twice the amount on sale.
Indications that Monti, a leading economist who heads Milan's Bocconi University, would head a new government brought some relief, but many details still need to be worked out.
The elegant, gray-haired Monti, 68, made his reputation as a strong-willed economist when as EU competition commissioner he blocked General Electric's takeover of Honeywell.
Berlusconi's designated successor Angelino Alfano indicated on Italian TV that the premier would step down between Saturday and Monday, and that he would accept Monti. But the allied Northern League, a key element of Berlusconi's government, is staunchly opposed to a government of technocrats.
The main opposition parties appear to be in line to accept Monti as the head of a broad-based government of technocrats, however some more hard-line elements of the left, including unions, remain opposed.
Antonio Di Pietro, a former prosecutor who heads a small left-wing party, said his party would not support Monti.
Financial chaos reverberated around the world, and investors pulled money out of Europe and stock markets fell.
Investors fear Italy might follow Greece, Ireland and Portugal into begging for a bailout from its partners in the euro. But Italy's euro1.9 trillion ($2.6 trillion) debt is far too great for Europe to cover.
Berlusconi announced Tuesday he would step down after Parliament passes a series of economic reforms to stave off financial ruin in Italy. But markets worried the tenacious premier will try to stay in power.
Parliamentary whips feverishly worked out a timetable to ensure that the Italian Senate would give final approval Friday to the package of measures, aimed at stimulating growth and reining in debt, according to state TV. It said the lower house would do the same on Saturday, meaning Berlusconi could be out before the weekend is over.
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Barry reported from Milan.
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