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Berlusconi ministerial resignations spark Italy crisis Berlusconi ministerial resignations spark Italy crisis
(35 minutes later)
All five ministers in the party of Italy's former Prime Minister Silvio Berlusconi are resigning from the shaky coalition government. The party of Italy's former Prime Minister Silvio Berlusconi says all five of its ministers are resigning from the shaky coalition government.
The development follows weeks of worsening relations between his party and Prime Minister Enrico Letta's centre-left grouping.The development follows weeks of worsening relations between his party and Prime Minister Enrico Letta's centre-left grouping.
Mr Berlusconi had already threatened to withdraw his ministers if he is expelled from the Senate for tax fraud.Mr Berlusconi had already threatened to withdraw his ministers if he is expelled from the Senate for tax fraud.
The crisis could lead to fresh elections amid acute economic problems. The crisis could lead to fresh elections amid economic problems.
Mr Letta flew back from New York on Friday in an attempt to prevent the government from collapsing.Mr Letta flew back from New York on Friday in an attempt to prevent the government from collapsing.
The prime minister said late on Friday that he would quit unless his government won a confidence vote due next week in parliament.The prime minister said late on Friday that he would quit unless his government won a confidence vote due next week in parliament.
In a statement, Mr Berlusconi described that ultimatum as "unacceptable".In a statement, Mr Berlusconi described that ultimatum as "unacceptable".
Mr Berlusconi's centre-right People of Freedom (PDL) party objects to a planned increase in sales tax.Mr Berlusconi's centre-right People of Freedom (PDL) party objects to a planned increase in sales tax.
"I have invited the People of Freedom delegation in the government to assess whether it is opportune for them to hand in their resignations," Mr Berlusconi said in a statement.
Interior Minister and PDL Secretary Angelino Alfano accused Mr Letta of "a grave violation of the pacts that this government is founded on".
But the prime minister responded angrily to the resignations, accusing the PDL leader of telling Italians a "huge lie" in using the sales tax as an alibi for his own personal issues.But the prime minister responded angrily to the resignations, accusing the PDL leader of telling Italians a "huge lie" in using the sales tax as an alibi for his own personal issues.
"In parliament, everyone will have to assume responsibility for their actions before the nation."
Mr Berlusconi's legal problems are seen as a cause of much of the tension inside the coalition.Mr Berlusconi's legal problems are seen as a cause of much of the tension inside the coalition.
A committee of the senate decides next week if he should be expelled after a court recently upheld his conviction for tax fraud. A committee of the Senate decides next week if he should be expelled after the Supreme Court recently upheld his conviction for tax fraud.
The BBC's correspondent in Rome, Alan Johnston, says the government is being pulled apart as Mr Berlusconi fights the moves to expel him.The BBC's correspondent in Rome, Alan Johnston, says the government is being pulled apart as Mr Berlusconi fights the moves to expel him.
Fresh elections are a real possibility, our correspondent says, but there may also be an attempt to stitch together a new governing coalition drawn from factions in the current parliament.Fresh elections are a real possibility, our correspondent says, but there may also be an attempt to stitch together a new governing coalition drawn from factions in the current parliament.
The coalition government was put together after inconclusive elections in February.
However, the administration is trying to grapple with Italy's deep-rooted economic problems, including its large debts, which at one point put the country firmly at the centre of the eurozone crisis.
The International Monetary Fund has warned that coalition tensions represent a risk to the Italian economy.