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Italy's caretaker Prime Minister, Mario Monti, promises to cut labour taxes in an interview seen as the launch of his election campaign.

Centre-left leader Pier Luigi Bersani is favorite among Italians to lead the next government, with outgoing technocrat Prime Minister Mario Monti second most popular and Silvio Berlusconi coming a close third, a poll showed on Sunday.

Outgoing Prime Minister Mario Monti posted his reform agenda online on Monday, urging Italians to join a debate on their country's future as potentially bitter election campaign gets underway two months before Italy goes to polls.

Silvio Berlusconi said on Wednesday he would withdraw as a candidate in Italy's coming election if outgoing Prime Minister Mario Monti ran as the head of a "moderate" coalition.

In a development that could further destabilize Mali, Prime Minister Cheick Modibo Diarra resigned on Tuesday, hours after he was arrested by soldiers on his way out of the country.

Italy's former Prime Minister Silvio Berlusconi said Saturday he would run again as his country's leader, signaling a return to the limelight for the nation's most flamboyant politician.

Prime Minister Benjamin Netanyahu on Sunday brushed off world condemnation of Israel's plans to expand Jewish settlements after the Palestinians won de facto U.N. recognition of statehood.

Over the course of five days, the Greek government -- led by the understated conservative Prime Minister Antonis Samaras -- overcame two high hurdles in a dash to qualify for the austerity program set out by the so-called troika, made up of the European Central Bank, the International Monetary Fund and the European Commission.

India's economic growth is expected to slow to around 6%, dragged by domestic issues, but the government is focused on getting the country back on a growth path, Prime Minister Manmohan Singh said.

Spain's conservative prime minister and the leader of the opposition aim to agree measures on Monday to stop banks evicting homeowners after a woman's suicide before her property was repossessed caused public outrage.