Berlusconi Seeks Confidence Vote to Break Impasse With Rival

Berlusconi Seeks Confidence Vote to Break Impasse With Rival

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2010-11-14 10:08
Members of the Popolo Viola, a movement against Italian Prime Minister Silvio Berlusconi, demonstrate by holding placard showing different stages of the "Via Crucis" for Italy.



Italian Prime Minister Silvio Berlusconi said Saturday he would seek a vote of confidence from Parliament in the coming weeks in an attempt to overcome the paralysis that has gripped his government.


For months, Mr. Berlusconi has faced pressure to resign amid a storm of controversies, ranging from the collapse of an ancient gladiators' dormitory in Pompei, to a renewed trash crisis in Naples, to scrutiny over why the premier pressed police in Milan to release a teenage woman from custody.


The problems have left Mr. Berlusconi locked in a standoff with Gianfranco Fini, co-founder of the premier's People of Freedom Party. Mr. Fini recently formed a breakaway party with enough lawmakers to bring down Mr. Berlusconi's government in a confidence vote. If Mr. Berlusconi were to resign and face early elections, he is likely to square off with Mr. Fini for the premiership.


Neither Mr. Berlusconi nor Mr. Fini wants to be the one to pull the plug on the current government. Such a move could prove unpopular with voters, destabilizing Italy's political system at a time when investors are scrutinizing sovereign debt across Europe's weaker economies.


Italy's public debt, which stands at €1.7 trillion ($2.3 trillion) , or 115% of GDP, is one of the world's largest. The cost of borrowing to finance that debt briefly rose to its highest level in a decade Thursday before settling back down.


Meanwhile, amendments to Italy's three-year budget, which still needs final approval from parliament, are just one of several crucial measures that have stalled as the political battle drags on.


The premier has so far resisted Mr. Fini's calls for his resignation, demanding that Mr. Fini instead vote against him in Parliament. Mr. Fini, seeking a way to keep the pressure on without actually triggering the government's collapse, plans to pull his lieutenants—one minister and several undersecretaries—from Mr. Berlusconi's government as early as Monday.


By calling for the confidence vote, Mr. Berlusconi aims to end the impasse by effectively forcing Mr. Fini to show his hand. In a statement, the premier said he had sent letters to both houses of Parliament requesting that confidence votes take place after lawmakers vote on the budget amendments. So far, no vote has been scheduled for the budget amendments.


If Mr. Berlusconi's government loses confidence votes in either the Senate or the lower house, the premier will be required to deliver his resignation to Giorgio Napolitano, Italy's president.


Mr. Napolitano will then decide whether Italy should hold early elections. He could also pursue other options, ranging from a government of technocrats to allowing Mr. Berlusconi to seek a new majority in Parliament. In such a scenario, Mr. Berlusconi could return as prime minister of a new government.


The Wall Street Journal