Italy's Berlusconi to resign, end scandal-hit era

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1 of 2. Italy's Prime Minister Silvio Berlusconi leaves a euro zone leaders summit in Brussels in this October 27, 2011 file photograph.
Credit: Reuters/Francois Lenoir/Files
By Philip Pullella
ROME | Fri Nov 11, 2011 9:55pm EST
ROME (Reuters) - Italian Prime Minister Silvio Berlusconi is expected to resign on Saturday, making way for an emergency government and ending one of the most scandal-plagued eras in Italy's post-war history.
The Chamber of Deputies was due to start a debate at 1130 GMT (6:30 am EST) on a package of economic reforms intended to reverse a collapse of market confidence.
The definitive approval of the package by the lower house will mark the final act of the Berlusconi government. He is expected to hold a last cabinet meeting and then go to the Quirinale Palace and hand his resignation to President Giorgio Napolitano.
His resignation will trigger a series of events over the weekend and most likely conclude on Sunday night or Monday morning with the formation of new government headed by former European Commissioner Mario Monti.
Monti, currently head of the prestigious Bocconi University in Milan, is expected to head a largely technocratic government to push through reforms in an effort to head off a perilous crisis.
Napolitano and Italian legislators have put the process on a fast track, prompting healthy reactions from the stock and bond markets.
Italian bond yields, which shot way above sustainable levels earlier this week, fell sharply in response to acceleration of the process leading to Berlusconi's resignation and the approval of the reforms.
Global markets panicked earlier this week because of the sustained political turmoil in the euro zone's third largest economy, and Italy's borrowing costs shot above a "red line" of 7 percent -- the level at which Portugal and Ireland had to seek an international bailout.
EUROPEAN LEADERS SUPPORT ITALY PRESIDENT
Napolitano has received encouragement from various European heads of state, including French President Nicolas Sarkozy and German President Christian Wulff.
In telephone calls on Friday, all three agreed that the new measures must be enacted quickly because the situation in Italy was extremely worrying for all of Europe and particularly the euro zone.
Monti, a highly respected international economist, has been favored by markets for weeks to lead Italy out of the crisis.
But although he would be supported by most centrists and the biggest opposition force, the Democratic Party, there is substantial opposition in Berlusconi's existing coalition.
Berlusconi has dominated the Italian scene since 1994 and has led three governments in 17 years.
After making a fortune in property and media, Berlusconi created his own party almost overnight to fill the void on the center-right caused by the demise of the Christian Democratic party in the corruption scandals in the early 1990s.
His third and last stint in power, which began in 2008 when his center-right won the national elections, has been the most scandal plagued.
His second wife left him 2009, accusing him of frequenting minors.
He leaves office facing four separate trials for fraud and having sex with a minor.
For much of this year, Italian newspapers have been filled with lurid details of "bunga-bunga" parties with young women at his luxurious residences in Rome, Milan and Sardinia.
One leaked wiretap had him boasting of having sex with eight women in one night and being so occupied with starlets that he was only prime minister "in my spare time."
(Reporting By Philip Pullella)

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Berlusconi says has checked and still has majority

Italy's Prime Minister Silvio Berlusconi talks to the media as he leaves a euro zone leaders summit in Brussels October 27, 2011.

Credit: Reuters/Francois Lenoir

ROME | Sun Nov 6, 2011 8:00am EST

ROME (Reuters) - Italian Prime Minister Silvio Berlusconi said on Sunday he had checked "in the last few hours" and there is no doubt that he still commands a majority in parliament.

Numerous center-right deputies have said they were considering abandoning the prime minister ahead of a key vote on public finances on Tuesday which could bring down the government.

However Berlusconi showed characteristic confidence in comments by a telephone link-up to a meeting of supporters.

"We have checked in the last few hours, the numbers are certain," he said.

Berlusconi also rejected talk of him being succeeded by an unelected technocrat government or another administration with the backing of all the forces in parliament.

"The only alternative to this government would be elections," he said.

In other remarks, he said that he could cancel agreed quarterly visits by the International Monetary Fund to check on Rome's progress in adopting promised reforms whenever he wanted.

"The request (for the IMF to come) came from us and we can withdraw it whenever we want," he said.

(Reporting By Gavin Jones)

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Italy Berlusconi faces pressure to go

1 out of 2. Italian Prime Minister Silvio Berlusconi leads past Germany's Chancellor Angela Merkel and British Prime Minister David Cameron prior to a meeting at the G20 Summit of major economies in Cannes, 3. November 2011.

Credit: Reuters/Toby Melville

By Roberto Landucci

ROME | Wed, November 3, 2011 4: 26 pm EDT

Rome (Reuters) - increased pressure on Italy's beleaguered Prime Minister Silvio Berlusconi on Thursday, to finish, as rebel MPs from his own Center Party, threatened the Government in a key parliamentary vote next week against the right.

With the financial markets turbulence and Italian bonds under heavy fire have calls to Assembly were from all sides for Berlusconi step aside and make way for a new Government to handle a crisis, which now threatens the entire eurozone.

Berlusconi wrote six former parliamentary loyalists demand a new Government in a letter in the daily Corriere della Sera published.

"The backer be a new political phase and a new Government," wrote the MEPs.

One of the delegates, Isabella Bertolini, said that Berlusconi next Tuesday against could the rebels in a parliamentary vote, ratify the budget 2010.

"We are convinced that a strong political signal come, otherwise we will see how we will act," told reporters.

The vote could further rebel from the ruling party of PDL in open she added if the 75 years of Premier does not change course.

"We ask Berlusconi, give us a signal." Whether through a transformation, a new Government or a new premier until is to choose him, "she said."

Votes are no confidence motion, but it is of vital importance to the Affairs and defeat lay his inability that legislation would bare.

Berlusconi has repeatedly rejected calls to the stood aside and make way for a transitional Government, saying the only alternative would be early elections next spring, a step, which he says would be irresponsible during the crisis.

Doubts about Greece crashed havoc in the markets, the renewed political uncertainty in Rome in Italian Government bonds future in the euro zone already.

Yields on bonds of the 10-year BTP meet more than 6.3 percent, creeping closer to the 7 per cent, which many analysts believe could lead to a so-called "buyers strike" in the investor fear and refuse to buy the paper.

TRUST VOTUM

A government source said Reuters Berlusconi his European partners a G20 Summit in Cannes had informed on Thursday that he would within call a vote of confidence by 15 days of the new measures in the light of the economic crisis.

Votes with a bill currently before the Senate be linked, to which the Government plans, would add you the latest in a long line of reforms promised.

As the growing number of PDL believe desert, Mr Berlusconi the opposition, that they have the numbers to topple him next week.

If previous party revolts, has always managed to the billionaire businessman, enough rebels again the Government fold to survive, to convince, but the rebellion this time looks as if it could be fatal.

The Liberal Party UDC said that two other deputies PDL join she would moved non-aligned during three members of the smaller ruling coalition block known as 'The charge' in the so-called mixed group of members.

A further PDL Deputy, Giuliano Cazzola, gave an interview of the online Affaritaliani daily Berlusconi should leave and an another centre right Government to enable the power.

"" "The Government should resign and the PDL should manage another solution without the alternative"Us or new elections"," he said indicating that Berlusconi could lead a new Government Chief of staff of Gianni Letta,.

President Giorgio Napolitano said on Tuesday, that he sounds support for the reform of political forces outside the ruling right, suggested that the he was broad-based look at the possibility of a Government of national unity.

But in a statement on Thursday said he, that was the ruling coalition had, Berlusconi would continue and he was able to carry out its commitment to economic reforms. Napolitano noted that the opposition to broad a national unity Government.

The head of State said that he on his next step to see what happening in the Parlament-an apparent reference to Tuesday's vote would decide.

WOMAN MELTDOWN

With Greece on the edge of leave may the euro move could who are now dependent on future of the European single currency, would be to prevent a meltdown in Italy that the block overload current defence mechanisms.

Berlusconi could support at a cabinet meeting late on Wednesday for the comprehensive reforms to promote growth and cut Italy's large debts, which he wanted to take to the G20 win.

Economy Minister Giulio Tremonti, a constant thorn in his side, accused his supporters to block a deal.

A decree, which was immediately implemented could have the Cabinet meeting agreed only on a so-called Maxi-amendment measures, the Bill now before the Senate added.

A Government statement said the amendment was in line with what had been agreed with EU partners at a Summit last week, but contain no information.

An official said the included tax breaks for investments in the infrastructure, simplify bureaucracy and youth employment but education to help.

French President Nicolas Sarkozy, the increasing indignation with unfulfilled displayed reform has promises of Rome, the reaction of many summarized, as he said, the question was not the content of the Italian budget package, but whether it is implemented.

(Additional reporting by Alberto Sisto in Rome, Giselda Arcangelo in Cannes;) Written by James MacKenzie. (Edit by Sophie hares)

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