Merkel says urgent Italy clarify its political situation

BERLIN: German Chancellor Angela Merkel called Thursday for Italy's political situation to be urgently clarified after Prime Minister Silvio Berlusconi announced he would resign after economic reforms are adopted.

Merkel told reporters she believed it was important that Italy, grappling with political upheaval and steps to tackle its 1.9-trillion euro ($2.6-trillion) debt, restore its credibility.

"That means that very quickly, as is now the plan, the austerity package is implemented and that ... also the political leadership is clarified as quickly as possible, since that, I believe, is very important for Italy's credibility," she told a news conference.

Rome is under strong pressure from both the markets and the international community to approve economic reforms and outline plans after Berlusconi steps aside.