Italy's representative on Iraq's Coalition Provisional Council has resigned.

"I am in deep disagreement with the policies of the coalition, whether they be about the economic reconstruction of the country or about the democratic transition," Marco Calamai told the media.

"The provisional authority is not working," said Calamai, Italy's representative on the council headed by the American Paul Bremer.

"To my mind, only a new, United Nations driven international plan giving Europe a greater role can improve the situation which is seriously compromised at the moment."

"Projects which have been implemented are not working and the Iraqis are more and more furious," he said. "This social unrest can only encourage terrorism."