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Berlusconi told President Giorgio Napolitano that he would remain in charge until the Stability Act of austerity measures was passed. The time frame of the law’s passage is not set, raising the prospect of days or even weeks of uncertainty. In a statement last night, the president said Mr Berlusconi saw the “urgent need” of passing the austerity budget which has been demanded by European leaders. Mr Berlusconi told his family-owned media channels he could “see only the prospect of new elections – parliament is paralysed”. Ferdinando Casini, head of the opposition party UDC, told reporters he is “convinced that Berlusconi understands the current economic and political situation does not allow for a long and extenuated election campaign”. Earlier Mr Berlusconi, who has dominated Italian politics for 17 years, narrowly survived a budget vote but lost his parliamentary majority. Describing his opponents as “traitors”, he initially refused to quit. But the president called Mr Berlusconi to a meeting amid warnings from the opposition that they would not back austerity measures while he was in power. Italian borrowing costs, which fell in anticipation of Mr Berlusconi’s resignation, spiked as the vote confirmed his survival. Italian 10-year bonds soared to 6.77pc – a 15-year high. Traders fear that Italy will not be able to service its €1.9trillion debt pile without an international bail-out, which Europe is currently unable to provide.