Italy forms new technocrat government

Italy's new government has been officially sworn in. New Prime Minister Mario Monti says economy is now the government's top priority, and he is confident his government can bring the country back from the brink of an economic disaster. A redefining moment for Italy. A new Italian government has been officially sworn in, as the country is suffering a widening crisis and a loss of faith by the European markets. Fomer European Commissioner Mario Monti has taken the lead. He succeeded Silvio Berlusconi to be Italy's new Prime Minister. The new government is entirely formed of technocrats. All the cabinet members are drawn from the ranks of bankers, diplomats and business executives, in the hope of steering the country away from an economic disaster. The new Prime Minister Monti will also serve as economy minister. He has stressed that economy is now a top priority for his administration. On Thursday, Monti is expected lay out an emergency rescue plan in the Senate before a confidence vote. Monti said: "We feel very confident about what we have done and we have also received many positive signals of encouragement from our European partners and from the international community. In this complicated time for all markets, I am confident this will reassure the markets as far as they are related to our country." Hopes for his new administration won Italy some respite in financial markets Wednesday. The yield on its 10-year bonds dropped 0.16 percentage points to 6.77 percent. But the government still faces the urgent task of tackling a broader crisis that has pushed Italy's borrowing costs to untenable levels. Experts say a debt default by Italy could break up the eurozone and shake the global economy.