Mario Monti new premier in troubled Italy

ROME -- Economist Mario Monti accepted the monumental task yesterday of trying to form a new government that can rescue Italy from financial ruin, expressing confidence that the nation can beat the crisis if its people pull together.

His selection came a day after Silvio Berlusconi reluctantly resigned as premier, bowing out after world markets pummeled Italy's borrowing ability, reflecting a loss of faith in the media mogul's leadership.

Berlusconi, 75, quit after the Italian parliament approved new reform measures demanded by the European Union and central bank officials -- but even those are not considered enough to right Italy's ailing economy.

"There is an emergency, but we can overcome it with a common effort," Monti told the nation shortly after Italy's president formally asked him to see if he can muster enough political support to lead the country out of one of its most trying hours since World War II.

"In a moment of particular difficulty, Italy must win the challenge to bounce back; we must be an element of strength and not weakness in the European Union, of which we are founders," he said.

Monti, 68, faces a daunting challenge -- preventing an Italian default that could tear apart the 17-nation eurozone and send Europe and the United States into new recessions.

Monti must now draw up a cabinet, lay out his priorities, and see if he has enough support in Parliament to govern.

Rival political parties offered various degrees of support, including one demand from Berlusconi's party -- the largest in Parliament -- that his government last only as long as it takes to heal Italy's finances and revive the economy.

The economics professor is no pushover, earning a reputation for staring down challenges as a tough EU competition commissioner. But he will have to win a confidence vote in Parliament first.

Monti told reporters he will carry out his task "with a great sense of responsibility and service toward this nation." Italy must heal its finances and resume growth because, "We owe it to our children, to give them a concrete future of dignity and hope."