Italian Prime Minister Silvio Berlusconi is calling a confidence vote, as he tries to dampen down an internal rebellion.
He is due to address Parliament on Thursday, after his coalition government suffered a major embarrassment when it failed to pass a budget provision earlier this week.
Measures to boost Italy’s sluggish economy have been delayed and there are continuing squabbles over austerity measures.
Italy’s central bank chief says the country has wasted time and needs to act, fast.
“It would be a tragic illusion to think that solutions might come from the outside,” said Mario Draghi.
“They are up to us. For two reasons. The first one is that the consolidation of the public finances and the spur of growth are not an external imposition, they are problems that have to be solved mainly for the sake of Italy’s interest,” he continued.
Following Draghi’s speech, demonstrators set up camp outside the Bank of Italy’s headquarters in Rome.
The demonstrators are angry about the European Central Bank’s request for further austerity measures and are calling for more of a say.