The Upper House is due to begin debating at 0930 GMT (4:30 am EST) on the package with the result due later in the day and the law is seen passing easily, having been approved by the Upper House Budget Committee on November 10 night.

Voting for the first time in the upper house will be Mario Monti, the former European Commissioner who has emerged as favorite to replace Prime Minister Silvio Berlusconi.

Berlusconi, who lost his majority in a vote on November 9 night, has promised to resign after the financial stability law is passed by both houses of parliament.

The law is due to be approved by the Lower House Chamber of Deputies on November 12. This means President Napolitano may accept Berlusconi's resignation as early as November 12 night and formally mandate Monti to try to form a new government soon afterwards.

Napolitano has urged parliament to act fast and some commentators say a new government made up mostly of technocrats could be in place as early as November 13 night before markets open next week.

The president moved quickly to calm markets on November 9 after Italy's borrowing costs reached levels that could close its access to market funding, a development which would threaten the future of the euro zone.