The amount
Italy must pay on the world's fourth-highest debt rose to a record level raising concern that Rome may have to turn to Brussels for help.
Yields continued to climb even after Berlusconi's Tuesday announcement that he would step down - a move widely desired by critics who consider his government ineffective in implementing reforms and boosting economic growth amid a massive financial crisis.
S&P downgrades Italy's credit rating The yield on Italy's 10 year bonds, a common measure of investor sentiment, rose early on Wednesday to more than 7.2 per cent. Investors are awarded in accordance with the perceived risk. The yield on Italy's 2 year and five-year bonds also rose.
The seven-per cent level is considered a dangerous threshold. Greece, Portugal and Ireland received international help to avoid defaulting on their debts.
"The economic and financial situation in Italy is very worrying," European Union economic and monetary commissioner Olli Rehn said on Tuesday following Brussels meeting of euro-area finance ministers.
The debt crisis also toppled the governments of all three eurozone countries. Similarly, Berlusconi on Tuesday said he would resign as soon as his government passed measures designed to boost economic growth.
Berlusconi, 75, said he won't stand for re-election and said 41-year-old acolyte Angelino Alfano would be the candidate for the conservative People of Freedom party.
Yields continued to climb even after Italian premier Berlusconi's announcement that he would step down. 
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