After consultations with political parties, unions and employers, Mr Monti said he would present his government to the president on November 16.

All those he spoke to were ready to make some sacrifices for the national good, Mr Monti said.

Earlier, Italy's cost of borrowing rose again past 7 percent amid ongoing nervousness about its high level of debt.

"I would like to confirm right now my absolute serenity and conviction in our country's ability to overcome this difficult phase," Mr Monti told journalists after two days of consultations.

He has been under pressure to put together a government of technocrats that can cut down Italy's EUR1.9tn public debt and restore economic growth.

He has the backing of the main political parties but he still needs approval from both houses of parliament before he can take office and push through tougher austerity measures.

Mr Monti, an unelected technocrat and former EU commissioner, has said he will "act with urgency" to address Italy's deep-rooted economic problems.