Italy's debt interest-payment levels reach record level

Yields continued to climb even after Berlusconi's Tuesday announcement that he would step down - a move widely desired by critics who consider his government ineffective in implementing reforms and boosting economic growth amid a massive financial crisis.

The yield on Italy's 10 year bonds, a common measure of investor sentiment, rose early Wednesday to more than 7.2 percent. Investors are awarded in accordance with the perceived risk. The yield on Italy's 2 year and five-year bonds also rose.

The seven-percent level is considered a dangerous threshold. Greece, Portugal and Ireland received international help to avoid defaulting on their debts.

“The economic and financial situation in Italy is very worrying,” European Union economic and monetary commissioner Olli Rehn told reporters Tuesday following Brussels meeting of euro-area finance ministers.

The debt crisis also toppled the governments of all three eurozone countries. Similarly, Berlusconi on Tuesday said he would resign as soon as his government passed measures designed to boost economic growth.

Berlusconi, 75, said he won't stand for re-election and said 41-year-old acolyte Angelino Alfano would be the candidate for the conservative People of Freedom party.