The following factors could affect Italian markets on Wednesday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).
Italian lawmakers on Tuesday pulled back from a showdown over the political future of Silvio Berlusconi after allies of the billionaire media tycoon threatened to bring down Prime Minister Enrico Letta's unstable ruling coalition.
Employers' association Confindustria holds a conference in Rome on economic policy challenges, with Enel CEO Fulvio Conti, Snam Chairman Lorenzo Bini Smaghi and Economy Minister Fabrizio Saccomanni.
Italy's Treasury has asked parliament to raise the ceiling on this year's net debt issuance to 98 billion euros ($130 billion) from 80 billion euros, highlighting the difficulty Rome is having in reining in the public finances.
Italian government bond yields rose above Spain's for the first time since March 2012 on Tuesday on concerns about the survival of Rome's fragile government coalition.
The Treasury offers 11.5 billion euros in bills on Wednesday.
European carmakers need to close more factories and cut more jobs, executives at the Frankfurt car show said on Tuesday, warning any recovery in demand was likely to be long and slow as unemployment remained high and bank lending weak.
* At the last Frankfurt motor show in 2009, the big story was not the cars, but the euro zone crisis and specifically how the continent's car companies could survive.
This year, the crisis is waning but caution remains. As sales continue to lag, especially in Southern Europe, the most interesting new models are not sports or luxury cars, but family station wagons, the epitome of practicality.
Italian luxury carmaker Maserati expects its sales to jump to about 16,000 cars this year from 6,300 last year, boosting the brand's profit margin by a "high single-digit" percentage, its chief said.
The European Union Commission has approved a plan to spur investment in communications networks and create a single market for telecoms services despite concerns that some parts may favour big operators, two officials said on Tuesday.
* Spanish telecommunications company Telefonica is considering raising its stake in Telecom Italia amid an expected overhaul of the group's ownership structure, the Wall Street Journal reported, citing people familiar with the matter.
* Telefonica and its Italian partners in telecoms holding company Telco disagree over a possible 3 billion euro recapitalisation plan for Telecom Italia, Il Messagero reported.
* Significant volumes of call options to buy Telecom Italia shares at 0.80 euros in December and 0.85 euros in March have been traded in recent sessions, Il Sole 24 Ore reported citing dealers. Speculation among traders is that Telefonica is the most likely buyer, the paper added.
Telecom Italia SpA is considering boosting investments in its Italian fixed-line network under a plan which, if approved, could require a cash injection, a trade union official said after a recent briefing with management.
* Telefonica is in talks with Brazil's telecommunications authority over the impact on Brazilian assets of a possible merger between Telefonica and Telecom, MF reported.
Mid-sized lender Carige is emerging as the latest Italian banking problem after the Bank of Italy said in a report the Genoa bank had engaged in onerous derivatives trades and raised objections to its accounting methods and valuations.
The European Parliament and the European Central Bank have resolved a dispute over the new financial supervisor, paving the way for EU lawmakers to sign off on new rules allowing the ECB to supervise banks next year.
Monte Paschi's board meets on Wednesday to discuss the bank's restrucuring plan after the European Union said the Sienese lender would need to carry out a 2.5 billion euro ($3.32 billion) capital increase if it wanted to win EU approval for a 4.1 billion euro state bailout.
The bank may ask current shareholders to buy into at least part of its planned capital increase, MF reported.
Campari announced the official opening of a $43 million dollar packaging facility at its Kentucky distillery which chief executive Bob Kunze-Concewitz said should help the group meet demand for its Wild Turkey bourbon and Skyy Vodka brands.
The oil and gas company's CEO Paolo Scaroni was quoted as saying in IL Fatto Quotidiano that he would prefer another mandate at Eni rather than moving to insurer Generali when his current mandate expire next year.
Banking association ABI holds Executive Committee meeting in Milan (0800 GMT).
Independent property research firm Scenari Immobiliari holds news conference to present report on "European Outlook 2014" (0930 GMT).
Banca Intermobiliare holds bond holders meeting (0730 GMT) and ordinary and extraordinary shareholder meeting (1400 GMT).
Primi Sui Motori holds board meeting on H1 results.
For more details on today's events please see the full agenda in Italian.