Rome ? Italy’s president moved swiftly Wednesday to reassure anxious markets, promising that Silvio Berlusconi would soon be vacating the premier’s office and unexpectedly lavishing praise on economist Mario Monti, who might lead the debt-plagued country’s next government.

The former European competition commissioner is widely considered to be a top contender to be the next Italian premier, now that Berlusconi has pledged to resign as soon as urgently demanded economic reforms are approved by Parliament.

President Giorgio Napolitano’s office announced he had named Monti, who now runs the prestigious Bocconi University in Milan, as a senator-for-life. Senators-for-life include notable figures outside of politics and have voting privileges in the Senate. The honor could reinforce Monti’s widely viewed status as a respectable figure above party politics.

Earlier in the day, financial markets had pounded Italy, as investors worried that Berlusconi might linger in office. Napolitano had responded by declaring there was no doubt that Berlusconi would leave soon, appearing to soothe investors.

State TV on Wednesday night said the financial reform measures so eagerly sought by Italy’s eurozone partners might be approved by Saturday.

It was another chaotic day driven by the European debt crisis. The Dow Jones industrial average dropped nearly 240 points in New York morning trading after Italy’s borrowing costs soared to a new record high. Traders were troubled by signs that Europe’s unending debt crisis was enveloping Italy — the eurozone’s third-largest economy, a nation too big for Europe to bail out.

And across the Ionian Sea, Greek lawmakers labored for a third day but finally came up with a deal to create an interim government to pass the country’s new debt deal. Outgoing Greek Prime Minister George Papandreou, who was expected to formally resign with hours, wished the next prime minister well but gave no indication of who it would be.

Greek opposition members claimed the ruling Socialists were holding up the naming of the interim Greek leader.

Berlusconi has pledged to resign after the Italian parliament passes the financial reforms that European officials have been demanding for months. The process can take up to two weeks, but Napolitano said that would be accelerated to days, allowing him to quickly begin talks on forming a new government or calling new elections.