The Italian Senate approved the new budget law in a vote today on Friday sending the package for a vote in the lower house on Saturday which when passed will see the resignation of Berlusconi to make way for a new government to take charge.

The Senate voted 156 to 12 to pass the package while the opposition lawmakers did not take part in the vote which allowed it to pass. The austerity and reform measures were required by the EU and under huge market and international pressure are aimed at boosting growth and cutting the 1.9 trillion euros of debt.

The vote was brought forward under intensified market pressure and after the Prime Minister lost more support, which ended in his pledge to resign which can come as soon as this weekend after the second vote passes the Chamber of Deputies tomorrow on Saturday.

The market is still taking the new favorably with the political uncertainty clearing in Europe, helping the single currency recovery some of this week’s heavy losses. The EUR/USD is currently trading higher by 0.26% at $1.3647 recording the high of $1.3668 from the opening of $1.3610.