Tuesday, October 1, 2013

Berlusconi Withdraws Support for Letta’s Coalition Government


           Former Prime Minister Silvio Berlusconi has withdrawn his support for the already-shaky coalition government of the center-left and center-right led by center-left Premier Enrico Letta.  He is the leader of the largest party of the center-right bloc, the People of Liberty, which has returned to its original name, Forward Italy. 

Berlusconi had required his party’s cabinet ministers to hand in their resignations.  The former Prime Minister objects to efforts by the center-left to remove him from his seat in the Senate because of a fraud conviction.  The Government faces a confidence vote in which it must depend on center-right defectors for support.  Berlusconi is pushing to guarantee an end of the hated property tax and to cancel the increase in the sales tax.  If the five-month-long Government falls, Italians would soon have to return to the polls for parliamentary elections, the results of which are uncertain. 

The prospect of a fall of the executive of Italy, which has the third largest economy in the European Monetary Union, has rattled financial markets, as the current Italian Government is considered fiscally responsible.  Italy, which has been reducing its budget deficit, is a bulwark against the contagion of debt and fiscal crisis in the eurozone.  

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