"The Great and Good’s ultimatum to Italy", headlines La Repubblica, revealing that at the G20 in Cannes "the Italian government has accepted IMF supervision over its economic reform program. The IMF and EU authorities are to monitor Italy's progress towards targets set by international institutions [i.e. EU and IMF], including pensions and labour reforms".

Rome has denied it is under "compulsory administration" and says it is only receiving "advice", but French president Nicolas Sarkozy has voiced EU concerns over Silvio Berlusconi's ability to take decisive action to avoid a speculative attack on Italy. After months of internal struggles on emergency measures demanded by the EU, his support in parliament has been shrunk after defections. A confidence vote could lead to his resignation, warns La Repubblica.