Rome has been forced to withdraw its bid to host the 2020 Olympic Games after new prime minister Mario Monti refused to guarantee the cost of staging the event.

Monti said it would be irresponsible to use government funds for the event during a time of austerity.

Estimates suggest the games could cost as much as £8 billion to stage.

Today is the deadline for the submission of applications files and guarantee letters to the IOC

The decision leaves Doha as the front runner to win the bid, with Istanbul, Tokyo, Madrid and Baku also in the race.

“In essence, if we find ourselves now in such a difficult financial position it is because similar decisions were made by previous governments without having considered the resulting impact in the following years,” Monti explained.

As prime minister, Monti has been charged with the task of restructuring the Italian economy to bring down deficits and improve competitiveness.