Italian Prime Minister Mario Monti has announced he will stand down soon.

He says he can no longer govern after Silvio Berlusconi's People of Freedom party withdrew crucial support for his austerity plans.

Hours earlier, Mr Berlusconi said he would run for a fourth term in elections next year, despite currently fighting charges of tax fraud and sexual misconduct.

Monti - the head of a non-elected cabinet of technocrats - will resign after completion of the budget and stability laws