The political debate in Italy is ongoing and the outlook for the new government is still not clear after Berlusconi said he will resign once the austerity measures pass the parliament in a vote expected Friday and Saturday.

According to the news reports and Italian media, former European Commissioner Mario Monti is emerging as the favorite candidate to lead a crisis government in Italy, as Berlusconi's party eases their calls for early elections.

Italian President Giorgio Napolitano appointed Monti a senator for life on Wednesday, a move that Italian media interpreted as a signal he will be asked to form the crisis government as soon as Berlusconi resigns in the coming days.

The bets for Monti to be asked to form the new government are looking higher by day, especially after Berlusconi's ruling PDL party softened its insistence for calling early elections and said it will consider the option of a broad-based government.