ROME — Italy's presidential palace has confirmed that Premier Silvio Berlusconi has resigned, setting in motion a transition aimed at bringing Italy back from the brink of economic crisis.
Cheers broke out in front of the palace by the hundreds of people who gathered to witness Berlusconi's final act in office, ending a 17-year political era.
A chorus of Handel's "Alleluia," performed by a few dozen singers and classical musicians, rang out in front of the president's palace as thousands of Italians poured into downtown Rome to rejoice at the end of Berlusconi's scandal-marred reign.
Hecklers shouted "Buffon, Buffon!" — buffoon in Italian — as Berlusconi's motorcade pulled out of his residence and into the presidential palace across town, where he has said he would tender his resignation amid weeks of market turmoil.
Respected former European commissioner Mario Monti remained the top choice to try to steer the country out of its debt woes as the head of a transitional government, but Berlusconi's allies remained split over whether to support him.
Their opposition wasn't expected to scuttle President Giorgio Napolitano's plans to ask Monti to try to form an interim government once Berlusconi resigns, but it could make Monti's job more difficult.
Napolitano is expected to hold consultations Sunday with all of Italy's political forces before deciding how to proceed.
Berlusconi's resignation was set in motion after the Chamber of Deputies, with a vote of 380-26 with two abstentions, approved economic reforms which include increasing the retirement age starting in 2026 but do nothing to open up Italy's inflexible labor market.
The Senate on Friday easily passed the measures and Napolitano signed the legislation Saturday, paving the way for Berlusconi to leave office as he promised to do after losing his parliamentary majority earlier in the week. He chaired his final Cabinet meeting Saturday evening, after which he was expected to head to Napolitano's palazzo to tender his resignation.
Berlusconi stood as lawmakers applauded him in the parliament chamber immediately after the vote. But outside his office and in front of government palazzos across town, hundreds of curiosity-seekers heckled him and his ministers, massing to witness the final hours of his government.
"Shame!" and "Get Out!" the crowds yelled, many toting "Bye Bye Silvio Party" posters as they marched through downtown Rome in a festive indication that for many Italians, like financial markets, the time had come for Berlusconi to go.
Berlusconi supporters were also out in force, some singing the national anthem, but they were outnumbered.
Earlier in the day, Berlusconi lunched with Monti in a clear sign the political transition was already under way, news reports said.
While members of his coalition and the euroskeptic Northern League remained opposed to Monti's nomination, some lawmakers suggested they could support a Monti-led government for a few months to enact the additional EU-demanded reforms before elections are held in early 2012.
Napolitano appealed for lawmakers to put the good of the country ahead of short-term, local interests — an indirect appeal to members of Berlusconi's party and the allied Northern League to work with the new government.
"All political forces must act with a sense of responsibility," he said.
It's an ignoble end for the 75-year-old billionaire media mogul, who came to power for the first time in 1994 using a soccer chant "Let's Go Italy" as the name of his political party and selling Italians on a dream of prosperity with his own personal story of transformation from cruise-ship crooner to Italy's richest man.
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