Last week could have hardly been a longer one in Rome. On Wednesday, as yields on government bonds climbed to 7.48 per cent, Italy was staring down the barrel.

A commitment to pass swiftly the package of reforms agreed with Brussels helped to appease the turmoil in the markets. It also hastened the resignation of prime minister Silvio Berlusconi, who had pledged to step down once the package had been passed. The end of the long reign of the much discredited tycoon-turned-politician was the real silver lining in the country’s financial storm.

Italy and Europe can now look forward to the new administration. It must show competence and leadership to help rebuild confidence among investors and allies. Most importantly, it must contribute to restoring voters’ faith in their country’s political system.