The bid committee approved a Eur31 million bid budget on a day of political chaos, with key borrowing rates spiking to worrying levels amid uncertainty over who would lead the country when Prime Minister Silvio Berlusconi stands down. Berlusconi, who owns media giant Mediaset and Serie A club AC Milan, has promised to resign as soon as urgent budget reforms are passed.

“Rome's bid is going forward and there is no chance that will be put up for discussion,” the bid committee said in a statement, according to The Associated Press. “While aware of the particular moment Italy is going through, the board has confirmed the importance of continuing the Rome 2020 project with determination.”

The statement was released after a meeting between bid chairman and International Olympic Committee (IOC) vice-president Mario Pescante and Rome Mayor Gianni Alemanno, with those present agreeing that the Olympics would bring economic and development benefits “for Rome and the entire country”. Rome 2020 officials also confirmed they are continuing to work on a parliamentary motion supporting the bid.

Rome was the first city to confirm its intention to bid for the Games in May 2010, but the bid file that must be submitted to the IOC by February 15. The applicants will be whittled down to a shortlist of candidate cities in May 2012, and then in September 2013, after rigorous due diligence from the IOC and the publication of an evaluation report into each bid, the host of the 2020 Games will be announced. Baku, Doha, Istanbul, Madrid and Tokyo are the other cities in the running.

Rome bid officials have reportedly scaled down the budget for hosting the Games should the Italian city be successful in the tender. The budget for the Olympics would be about Eur5 billion, down from projections of Eur9 billion earlier this year. IOC vice-president Mario Pescante said he was hoping the Rome bid could be “a blueprint for a return to fiscal responsibility and real sustainability in the Olympic bidding process”.