Italy's Monti faces vote of confidence on economy

Italy's Prime Minister Mario Monti gestures during a press conference at the Chigi Palace in Rome 15 December 2011.
IMG credit: Reuters/Tony Gentile
By Gavin Jones

Rome (Reuters) - the Italian Government faces a confidence vote in Parliament to accelerate on Friday, a move after approval of a 33 - billion euros ($ 43 billion) austerity package the confidence of the markets in the euro zone's third-largest economy recover.

Government of the non-elected technocrats Mario Monti has an overwhelming majority in both houses of Parliament and the vote in the Chamber of Deputies take place in the afternoon should simply pass.
Plan of economy then moves in the Senate, where a similar vote is expected before Christmas, marking the last passage as law decree, which went into force on 4 December but required parliamentary approval be held 60 days.

Monti's Government was last month before a collapse in confidence of the markets, which Italy in the Centre of the euro-zone debt crisis. He has passed through the package of tax increases, spending cuts and pension reform aims to balance its budget by 2013 Italy's goal.

However, analysts say, increasing costs for the taking-up and the prospect of a rapidly deepening of recession still threaten to undermine Italy's fiscal consolidation efforts.

The Government handle to confidence vote debate on dozens of amending the law to curb, many League presented by them party of the opposition.

Monti's predecessor, Silvio Berlusconi, had called a vote of confidence, saying that his PDL party-the largest in the Parlament-the Government of a sense of responsibility, would not support because it with all the victims of the Italians asked agrees to.

RECESSION

Both Berlusconi PDL and the centre left party are concerned about parts of the law, but can not sabotage the Government for fear of unleashing economic disaster, which would probably lead to Italy its debt in arrears.
Underlines the depth of the crisis, cut the main employers lobby Confindustria on Thursday the growth forecast for Italy next year minus 1.6 percent from a previous estimate of 0.2 percent and said that the country was already in recession.

It said even this forecast was based on Italian bond yields dropped to less than 5% of April compared with 7 percent jetzt-- the level at which Ireland, Greece and Portugal were forced, rescue operations take.
Such a bailout for the much larger Italian economy would likely overwhelm Europe's defense, which is why the country is in the front of the euro zone crisis.

Lega Nord in the word fallen Monti in Parliament this week and held up posters: "This is not a budget, but a bank robbery." You also sought to interfere with the convening of the endorsement of foot-dragging in the Chamber before speaker Gianfranco Fini cut short.

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Syria faces Arab sanctions deadline over monitors

1 of 4. A cat passes by an army checkpoint in Hula, near Homs November 24, 2011.

Credit: Reuters/Handout

By Dominic Evans

BEIRUT | Thu Nov 24, 2011 6:16pm EST

BEIRUT (Reuters) - Syria faces a Friday deadline to sign an Arab deal allowing monitors into the country or incur sanctions over its crackdown on protests including halting flights, curbing trade and stopping deals with the central bank.

Arab foreign ministers warned in Cairo that unless Syria agreed to let the monitors in to assess progress of an Arab League plan to end eight months of bloodshed, officials would consider imposing sanctions on Saturday.

Under a November 2 Arab League initiative, Syria agreed to withdraw troops from urban centers, release political prisoners, start a dialogue with the opposition and allow monitors and international media into the country.

Since then hundreds of people, including civilians, security forces and army deserters, have been killed as the unrest which the United Nations says has claimed at least 3,500 lives since March continued unabated.

The Syrian Observatory for Human Rights, a British-based opposition group, said at least 47 people were killed in Syria on Thursday, including 16 soldiers and 17 army deserters, mostly around the rebellious city of Homs and near the town of Rastan to the north.

The violence has prompted former ally Turkey to bluntly tell President Bashar al-Assad to step down and led France to propose "humanitarian corridors" in Syria to help transport medicines or other supplies to civilians in need.

French Foreign Minister Alain Juppe said he would discuss the idea with the Arab League but a source at the 22-member body said the proposal was not brought up at the Cairo meeting.

"In the case that Syria does not sign the protocol ... or that it later violates the commitments that it entails, and does not stop the killing or does not release the detainees ... (Arab League officials) will meet on Saturday to consider sanctions on Syria," the Arab ministers said in a statement.

They said possible sanctions, which were not intended to affect ordinary Syrians, included suspending flights to Syria, stopping dealings with the central bank, freezing Syrian government bank accounts and halting financial dealings.

They could also decide to stop commercial trade with the Syrian government "with the exception of strategic commodities so as not to impact the Syrian people," the statement said.

Syria's economy is already reeling from the eight months of unrest, aggravated by U.S. and European sanctions on oil exports and several state businesses.

"HUMANITARIAN CORRIDORS"

After months in which the international community has seemed determined to avoid direct entanglement in a core Middle East country, the diplomatic consensus seems to be changing.

The Arab League suspended Syria's membership two weeks ago, while this week the prime minister of neighboring Turkey - a NATO member with the military wherewithal to mount a cross-border operation - told Assad to quit and said he should be mindful of the fate of fallen dictators such as Adolf Hitler, Benito Mussolini and Libya's deposed leader Muammar Gaddafi.

France became the first major power to seek international intervention in Syria when it called for "humanitarian corridors" in Syria to alleviate civilian suffering.

A Western diplomatic source said the French plan, with or without approval from Damascus, could link Syrian civilian centers to the frontiers of Turkey and Lebanon, to the Mediterranean coast or to an airport.

Its aim would enable transport of humanitarian supplies or medicines to a population that is suffering.

Juppe insisted the plan fell short of a military intervention, but acknowledged that humanitarian convoys would need armed protection.

"There are two possible ways: That the international community, Arab League and the United Nations can get the regime to allow these humanitarian corridors," he told French radio. "But if that isn't the case we'd have to look at other solutions ... with international observers."

Asked if humanitarian convoys would need military protection, he said: "Of course... by international observers, but there is no question of military intervention in Syria."

"MOST DANGEROUS PHASE"

The Syrian Observatory said 15 army deserters were killed in clashes with the military west of Rastan and in raids by security forces. Eleven military and security personnel were killed by army deserters in the city of Houla, it said.

Alongside the mainly peaceful protests, armed insurgents have increasingly attacked military targets in recent weeks.

State media have reported the funerals of 34 soldiers and police in the last four days. Since the outbreak of the uprising officials have blamed armed groups for the violence and say 1,100 members of the security forces have been killed.

"The Syrian crisis may or may not have entered its final phase, but it undoubtedly has entered its most dangerous one to date," the International Crisis Group said.

"Many in Syria and abroad are now banking on the regime's imminent collapse and wagering that all then will be for the better. That is a luxury and optimism they cannot afford."

Washington repeated an appeal on Wednesday for U.S. citizens to leave Syria: "The U.S. Embassy continues to urge U.S. citizens in Syria to depart immediately while commercial transportation is available," the embassy said on its website.

Assad, 46, seems prepared to fight it out, playing on fears of a sectarian war if Syria's complex ethno-sectarian mosaic shatters and relying on support of senior officials and the military to suppress the protests, inspired by Arab uprisings which toppled the leaders of Tunisia, Egypt, Libya and Yemen.

However many experts say Assad, who can depend mainly on the loyalty of two elite units dominated by his Alawite minority community, cannot maintain current military operations without cracks emerging in the mainly Sunni Muslim army.

(Additional reporting by Khaled Yacoub Oweis in Amman, Dina Zayed, Marwa Awad and Ayman Samir in Cairo, John Irish in Paris; Editing by Jon Hemming)

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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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