The following factors could affect Italian markets on Monday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).
Italian debt borrowing costs rose in early trade on Monday following Prime Minister Mario Monti's weekend decision to step down as soon as the 2013 budget law is passed.
Italian Prime Minister Mario Monti announced on Saturday that he would resign once the 2013 budget is approved, potentially bringing forward an election due early next year and fuelling speculation that he might run.
The surprise announcement came two days after Silvio Berlusconi's party withdrew parliamentary support for the technocrat government and hours after Berlusconi said he would run to become premier for a fifth time on a platform that attacks Monti's stewardship of the economy.
Italian Prime Minister Mario Monti, who said on Saturday he would resign as soon as the country's budget for 2013 is approved, told daily La Repubblica he does not know what his political future is.
Prospects of a political crisis in Italy sooner than expected - after Prime Minister Mario Monti said he intends to resign early - are expected to drive up Rome's borrowing costs and tensions in the euro zone after months of calm on the bond market.
Genoa-based Banca Carige and its main shareholder, the non profit banking foundation Fondazione Carige, are planning to join a group of bidders seeking to acquire Finmeccanica's Ansaldo Energia unit, Italian papers reported at the weekend. The bidding group will meet in Milan on Monday, the press reported, and Finmeccanica Chief Executive Giuseppe Orsi may take part. Korean group Doosan is also interested in acquiring Ansaldo Energia, Il Sole-24 Ore reported.
A spin-off of Telecom Italia's landline network will depend on a more favorable European regulatory framework, Chairman Franco Bernabe told Il Messaggero on Monday.
The automaker plans to cut one third of its workforce in Poland, where it makes its popular Fiat 500 minicar, as a sales slump that has forced automakers to shut plants in Western Europe hits one of Fiat's most productive factories.
Excess production capacity is piling pressure on carmakers' profitability as sales stagnate. Fiat has already sent most of its Italian labor force home on a temporary layoff for most of the fall and in some cases well into January.
The Bank of Italy is considering selling its 4.5 percent stake in the insurer to the state-controlled Fondo Strategico Italiano (FSI), people familiar with the situation said on Friday.
"The Bank of Italy is looking at various options, and is leaning towards selling to FSI, but the matter is still under consideration," said one of the people.
FSI is controlled by Cassa dei Depositi e Prestiti (CDP), a government-owned investment fund run by the Economy Ministry.
The Italian real estate group plans to sell assets for 2 billion euros in the next five years to focus on services and to halve its senior debt by the end of 2016, newly-appointed Chief ExecuTive Sergio Iasi told La Repubblica on Monday.
GENERAL ELECTRIC - AVIO
General Electric is near a deal to acquire Italy's Avio, a privately held airplane parts supplier, people familiar with the situation said on Friday.
"General Electric is in pole position; it's working on the details of the deal," said a person familiar with the situation.
The sale is being managed by Cinven, a private equity fund that controls Avio.
French-Italian group STMicroelectronics said it planned to exit its loss-making mobile chip joint-venture ST-Ericsson as part of its new strategic plan announced Monday.