Rebirth of England.

On November 11, Italian Prime Minister Silvio Berlusconi submitted his resignation to President Giorgio Napolitano, officially resigning from the post of prime minister.

Berlusconi served as Prime Minister of Italy three times and was the longest-serving Prime Minister in Italy since World War II - but this time he did not survive his third term.

Because of Italy's increasingly severe debt crisis, on the 8th of this month, Berlusconi made an "agreement" with the people that he would resign after the parliament passed the economic reform plan required by the European Union.

意大利众议院11月12日以380票赞成、26票反对、2票弃权的结果通过紧缩法案以稳定国内财政状况。

After that, later that day, Berlusconi went to the presidential palace to submit his resignation "as scheduled". According to Berlusconi's spokesman in an interview, Berlusconi intends to retire from politics after his term as a member of parliament expires.

Berlusconi is currently a member of the House of Representatives for the People of Freedom Party, a position he holds until 2013.

However, even if he withdraws from Italian politics, Berlusconi can continue to be a media tycoon - the family business Fininvest financial investment institution founded by Berlusconi includes Italy's largest private broadcasting operator Mediaset Broadcasting, and also owns the Serie A club AC Milan.

Affected by the European debt crisis, the broadcaster's market value has shrunk by half since May this year. However, last month, Mediaset Broadcasting received an investment of 5 million euros from SEM Group, which improved the company's financial situation.

After accepting Berlusconi's resignation, Italian President Giorgio Napolitano plans to convene various political parties on the 13th to agree on a new prime minister and set up a transitional government as soon as possible.

It is generally believed that Mario Monti, a famous economist and former European Commission commissioner, is the favorite candidate for prime minister.

One of the signals was that after Berlusconi announced his conditional resignation on the 8th, Napolitano appointed Monti as a life senator the next day.

Monti, 68, was born into a wealthy family in Varese, Lombardy, northern Italy. His father worked in the banking industry.

He graduated from Bocconi University of Milan, a well-known Italian business school, in 1965, and later entered Yale University in the United States.

Monti is regarded as an academic economist with considerable theoretical achievements and practical experience, and is known as "Super Mario".

Monti served as president of his alma mater, Bocconi University, from 1989 to 1994. He was later appointed by then Prime Minister Silvio Berlusconi to join the European Commission as Commissioner for Internal Market Affairs. In 1999, he was appointed Commissioner for Competition Affairs until 2004.

During his tenure as European Commissioner, Monti showed his tough side many times.

In 2001, he vetoed General Electric's $470 billion acquisition of Honeywell International, conveying Europe's different voice to Washington.

In 2004, he ruled that Microsoft had "abused its monopoly position in the European personal desktop market," violating EU law and fined it about 5 million euros (about 6.7 million U.S. dollars) and required it to share key technologies with competitors.

In any case, the biggest challenge facing the new Italian Prime Minister after taking office is how to get Italy out of the sovereign debt crisis as soon as possible.

Earlier this month, the worsening European debt crisis finally overwhelmed the Greek government of Papandreou, and then the crisis turned its attention to Italy.

For a time, Italy's 10-year government bond yield exceeded the dangerous level of 7%, the Milan stock market fell sharply, and global financial markets were hit hard.

People are worried that Italy will default on its debt, and are even more worried that the scale of Italy's debt will be so large that it is "unrescible" and will drag down the eurozone and hurt the global economy.

Against this backdrop, the Berlusconi government came under pressure from all sides at home and abroad, and encountered an unprecedented "crisis of confidence" - other leaders attending the G20 summit complained about Italy's ineffective reforms, the domestic opposition constantly accused the Berlusconi government of having limited ability to overcome the crisis, and even its former allies parted ways with it.

Italy is the third largest economy in the eurozone after Germany and France. Once its economic situation falls into a "Greek-style crisis", it will inevitably affect the stability of the eurozone.

EU leaders believe that a "firewall" must be established to prevent Italy's difficulties from spreading to other eurozone countries.

Therefore, whether Italy's transitional government can help the country resolve the crisis has attracted much attention.

Analysts believe that Berlusconi's resignation paves the way for the establishment of a transitional government and can temporarily calm the market's crisis of confidence, but Italy's long-accumulated problems are difficult to resolve in the short term.

The fiscal austerity measures finally passed by the Italian House of Representatives on the same day included increasing consumption surcharges, raising the pension age, raising fuel prices and selling state-owned assets.

These measures need to be implemented by a government with strong executive capabilities.

For Italy, it is now crucial to achieve fiscal austerity targets and implement and strengthen economic system reforms to stimulate economic growth.

On November 11, Italian President Napolitano formally appointed Mario Monti as Prime Minister, responsible for forming a transitional government.

After accepting the appointment, Mario Monti said that a new government would be formed as soon as possible. Italy is facing a very difficult time and must repair its finances.

Just one week after Mario Monti took office, Italy will auction 30 billion euros of five-year government bonds in order to ease the fiscal crisis.

Analysts believe that Italy's current 10-year government bond interest rate has hit a record high of nearly 7.5%. If the interest rate in this auction remains high, Italy, whose total debt is five times that of Greece, will find it difficult to repay its debts.

The market generally expects the auction rate to be around 6%. Since international capital is extremely concerned about Italy's debt repayment ability, a higher yield compensation is needed.

Before the auction of 30 billion euros of 5-year government bonds, the new Italian Finance Minister said that in addition to continuing to sell government bonds, they would also consider selling part of state-owned assets to replenish funds in accordance with the austerity bill previously agreed upon by the parliament.

The 17.5% stake in United Power currently held by the Italian government is also said to be on the list of shares to be sold.

"Italy has expressed its willingness to consider our proposal to buy from them the government's shares in United Power, at our price of 132 billion euros..."

Currently, United Energy Group holds 55% of the shares of United Power Group. If the acquisition of the Italian government's shares is completed, their shareholding in United Power Group will reach 72.5%, thereby achieving absolute control over the company.

As for the acquisition funds...

This time, French Natixis Bank and BNP Paribas will provide a total of more than 120 billion euros in loans for United Energy Group's acquisition. Of course, a portion of United Power Group's shares will be required as collateral.

With the profitability of United Energy Group, I believe that these loans can be repaid within 5 years...