In Brussels over the weekend Mr Berlusconi was given an ultimatum - he was told to go back to Rome and produce a credible plan by Wednesday.
He passed an austerity budget back in August but it does not seem to have convinced the market.
Since then, there has been a lot of political infighting and his popularity has reached an all-time low.
There is no overall plan in Italy - neither a plan A nor a plan B - and people in Brussels are getting a bit impatient. They see that he cannot deliver, which is putting him in a difficult political position at home.