Italian lawmakers set to approve key reforms

---

ROME, Nov 12 (AFP): Italian lawmakers were set to give the nod Saturday to a reform package aimed at staving off bankruptcy, as Greece got to work on its own economic makeover after a week of eurozone debt trauma. Italy's lower house of parliament was to meet from 1130 GMT to give final approval for the reforms already agreed by the senate-paving the way for Prime Minister Silvio Berlusconi's resignation and the formation of a new government. A cabinet meeting at which Berlusconi could announce the resignation is scheduled for 1700 GMT, after the vote. Stock markets rallied after Friday's senate vote in Rome and the swearing in of a new government in Athens tasked with saving that debt-stricken nation from economic collapse. US stocks jumped about two per cent and European stock markets closed sharply higher, up to 3.68 per cent in Italy. International Monetary Fund chief Christine Lagarde on Saturday welcomed "significant progress" made in Greece and Italy towards political stability, after European Union President Herman Van Rompuy said the Italian reforms were "a major step in the right direction". But Russian Prime Minister Vladimir Putin said Moscow was "very worried" by the eurozone crisis. "If measures are not taken urgently ... the next step is stagnation," he said, adding that EU leaders must act to "stop this development of events." Ratings agency Standard and Poor's meanwhile has put Hungary's credit rating (BBB-) on "negative surveillance", a move that commonly precedes a downgrade. S&P cited "the worsening external financial and economic environment" in Hungary and an "unpredictable" political environment in explaining the move. After a parliamentary revolt deprived Berlusconi centre-right coalition of a ruling majority, he undertook to resign once parliament approved the reform measures-which include state asset sell-offs and incentives to hire workers and boost competition. Former EU commissioner Mario Monti, a 68-year-old economist supported by the markets, has emerged as the most likely head of a transition government. But while the main opposition Democratic Party backs Monti, parts of Berlusconi's coalition and the small opposition Italy of Values party want President Giorgio Napolitano to dissolve parliament and call early elections. Analysts warn an election campaign now-more than a year before the next parliamentary vote was expected in 2013 -- could plunge Italy further into financial chaos.