The lower house of Italy's parliament is due to vote on a package of austerity measures required by the EU and designed to restore markets' confidence in the country's economy.
The vote will pave the way for PM Silvio Berlusconi to resign.
A technocrat government run by ex-EU commissioner Mario Monti seems likely.
The Senate on Friday withdraw the plan, which includes a increase in the pension age, a fuel price hike and the sale of state assets.
Following the vote, shares in most European markets has been increased 2-3%, and the interest rate paid on Italy's 10-year bonds dropped.
IMF chief Christine Lagarde has appreciated the "significant progress" made in tackling the political instability in Italy and Greece, where interim Prime Minister Lucas Papademos was sworn in at the head of a new cabinet on Friday.
"What we wanted at the IMF was political stability and a clear policy in Italy and Greece. I believe this progress has been made," she said on Saturday during a visit to Tokyo.
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