After the main centre right party withdrew it support for the EU imposed technocratic Government, the end was always going to be insight for Mario Monti's Government and he has gone today.
What is worse for Italy though is it looks unlikley he will get his budget law passed and instead it will be straight to elections. Silvio Berlusconi has said he will run again and with a well financed campaign he could end up as Prime Minister again, despite the two court cases hanging around his neck. This instability will do no good for the Italian debt and Stock markets.
This situation also highlights the desperate desire of people not to undergo austerity measures for a prolonged period. It is just too tough and it is increasingly becoming obvious that the process of long-drawn out austerity is unable to win any public mandate in most countries.
What is the alternative? Well in the pre-euro era a Mediterranean country in such trouble would simply devalue its currency to the point at which it regained lost competitiveness with Germany and the other northern states. Everyone would collectively be made poorer in the Country, but the shock was short and sharp.
Nowadays this is no yet an option - although who knows how long the euro will hold together as a stable currency. But the populations of Southern Europe are simply not accepting of such fierce financial governance, especially when it has also led to such a large amount of social instability with unemployment at such high levels.
For these states, austerity can't be the right solution, I hope Berlusconi wins and tries a new option for Italy. It's the only way this mad phase of fiscal and monetary experimentalism will come to an end.