Europe’s third largest economy has slipped into chaos after the Italian center-right coalition, headed by Silvio Berlusconi has pulled out from Prime Minister Enrico Letta’s government after five months of trembling coalition rule.
The announcement of the resignation of five ministers on Saturday
happened after Berlusconi pressed ministers in his center-right
People of Liberty Party coalition to step down if the government
does not retract an increase to the value-added tax (VAT),
effective next week on Tuesday.
"The decision taken by Prime Minister Enrico Letta to freeze
government activities, and therefore setting off an increase in
sales tax, is a serious violation of the pacts on which this
government was formed," Berlusconi said in a statement on
Saturday.
The resignations should now be officially presented to President
Giorgio Napolitano, who will then decide whether to hold new
elections or somehow continue the government.
"We need a parliament that discusses and works, not that
breaks up every now and then," Napolitano said during a visit
to Naples. "We do not need continuous election campaigns, we
need continuity of the government's actions, decisions and its
measures to resolve the problems of this country," the
president added.
In a statement issued by Premier Letta's office, the leader
of the government accused Berlusconi of using the VAT
increase as a personal alibi "to justify the crazy and
irresponsible gesture, all aimed only to cover up his personal
affairs."
Letta said that Berlusconi is depriving the coalition government
of the stability necessary to push through alternative measures.
"The Italian people will know to return to the sender such a big
lie and attempt to distort reality," Letta said.
The leader of the Democratic Party called the center-right
ministers' decision to resign "irresponsible."
"They are provoking a crisis and we must evaluate exactly what
the consequences are," Giuglielmo Epifani said.
The five-month-old coalition government has been unstable for
weeks after a high court confirmed Berlusconi's tax fraud
conviction. Most of the senators of Berlusconi's People of
Freedom (PDL) party have pledged to resign if a Senate committee
votes next week to deprive the 76-year-old media tycoon of his
Senate seat due to his conviction.
On Friday Letta said that he will quit unless he sees solid
support in a confidence vote in Parliament on his government,
which is battling to pull Italy out of economic recession. But
the cabinet failed to approve the fiscal measures aimed at
bringing the budget deficit to EU limits, effectively leaving
traditional left and right opponents near a complete breakdown.
Italy is faced with a 2-trillion-euro public debt and youth
unemployment of some 40 percent.