Berlusconi Says He’ll Resign, Vows to Spend More Time with Underage Hookers
Italian Premier Silvio Berlusconi on Tuesday promised to resign, but there’s a catch. He’ll do so only if and when his country’s parliament passes economic reforms demanded by the European Union to save Italy from being swallowed by Europe’s debt crisis. Italy is the third-largest economy in the European Union and would be too expensive to bail out like Greece, Portugal and Ireland were.
Ahead of the vote, Berlusconi believed his parliamentary majority was “strong enough to pass legislation in the coming weeks,” the Associated Press reports.
His plan intended to initially sell off government property and privatize some local public services as a first step. That plan, however, went out the window on Tuesday morning after Berlusconi lost his majority.
Once that happened, the pressure to resign became overwhelming. There doesn’t seem to be any indication when those economic reforms will pass, and matters are further complicated because President Giorgio Napolitano admitted he will dissolve parliament and call for early elections. Currently, a vote is schedule for next week regarding economic reforms and a new budget.
So what exactly happened that finally forced Berlusconi’s planned resignation (especially considering the underage prostitute scandal that’s been going on for quite some time)?
Berlusconi’s margin was eight shy of the 316 votes he needs to claim an overall majority in the 630-member chamber. Next week, the government has a confidence vote on economic reforms that were demanded by the European Union. Without an outright majority in that vote, Berlusconi would be forced to resign.
“Today’s vote was a clear confirmation that the ruling coalition has lost its majority, meaning that chances that Berlusconi will lose the confidence vote are very high,” said Unicredit economists Chiara Corsa and Loredana Federico.
Berlusconi scrutinized the tally after the vote, trying to figure out who had abstained, and later huddled at his office with his top adviser.
“This government does not have the majority!” thundered opposition leader Pierluigi Bersani after the vote. “If you have a crumb of sense in front of Italy, give your resignation.”
As Bersani spoke, Berlusconi scribbled his options on a piece of paper. An AP photo showed he wrote “resignation” and also “eight traitors,” an apparent reference to former allies who had abstained.
Prior to Tuesday’s vote, even Berlusconi’s top ally Umberto Bossi of the Northern League urged the premier to leave.
To make matters worse, here’s a bit of the economic realities facing Italy. Borrowing rates shot to their highest level since 1999, when the euro was established. The yield on Italy’s ten-year bonds was up 0.24 percentage point at 6.74 percent. A rate of over 7 percent is considered unsustainable and was the point at which Greece, Ireland and Portugal ran into dire trouble, Reuters notes.
One of the major reforms needed to pass concerns a substantial part of Italy’s debt. In 2012, the country will need to raise about $412 billion to keep their economy afloat, but with soaring interest rates Italy finds itself in an untenable position.
The Globe and Mail notes the crucial 2012 budget approval, which Berlusconi has vowed to see through before his resignation, could happen by the end of the month. Regardless of Italy’s pending doom, don’t you secretly want to attend Berlusconi’s retirement party?
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