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Italian economy 'not at high risk'

10 December 2012 Last updated at 13:13 GMT

Italian stocks have fallen sharply, reacting to news that Prime Minister Mario Monti plans to resign.

The main Italian stock index fell 3.1%.

Mr Monti became the leader of a technocrat government in 2011 after investors became worried about Italy's economic health.

Berenberg Bank's senior economist and former European Central Bank economist Christian Schulz told BBC News that the Italian economy was no longer at a high risk after the austerity measures Mr Monti had introduced, and a political change may not spell danger for the country.