Italy moved closer to a national unity government on Thursday, following
Greece's lead in seeking a respected veteran European technocrat to
pilot painful economic reforms in an effort to avert a euro zone bond
market meltdown.
After four days of chaotic haggling, former
European Central Bank
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Lucas Papademos was appointed to head an interim crisis cabinet charged with saving
Greece from default, bankruptcy and an exit from the euro zone.
In Rome, former European Commissioner Mario Monti emerged as favorite to replace Italian Prime Minister Silvio Berlusconi
within days and lead an emergency government that would implement long
delayed reforms of pensions, labor markets and business regulation.