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Italy crisis: PM Letta to go before parliament Italy crisis: PM Letta battles for parliament support
(about 17 hours later)
Italian Prime Minister Enrico Letta is to go to parliament to seek a way out of the crisis engulfing his coalition government. Italian Prime Minister Enrico Letta is battling to rescue his coalition after five ministers loyal to former PM Silvio Berlusconi pulled out.
A confidence vote will be held in parliament on Wednesday.A confidence vote will be held in parliament on Wednesday.
Relations between Mr Letta's centre-left grouping and ex-PM Silvio Berlusconi's party have reached rock bottom. Tensions are running high between Mr Letta's centre-left grouping and Mr Berlusconi's centre-right party.
Berlusconi pulled his five ministers out of the administration on Saturday. Jitters about Italy's economic reforms hit government borrowing and shares. The Milan stock market fell almost 2% and the interest rate on bonds rose.
The current coalition government was put together with difficulty after inconclusive elections in February. Italy's economy, the eurozone's third-largest, is struggling to achieve any growth and Mr Letta is trying to push through unpopular austerity measures.
The government's debt burden has grown to about two trillion euros (£1.7tn; $2.7tn). It reached 127% of total national output (GDP) in 2012 and is forecast to go above 130% this year.
Political uncertainty
Berlusconi pulled his five ministers out of the administration on Saturday. He has attacked the government's failure to prevent a rise in VAT (sales tax) to 22%.
But those ministers have now given mixed signals as to whether they are actually leaving the government.But those ministers have now given mixed signals as to whether they are actually leaving the government.
After meeting the prime minister, President Napolitano said the rebel ministers' equivocation had led to a "climate of evident uncertainty regarding possible developments". After meeting the prime minister, President Giorgio Napolitano said the rebel ministers' equivocation had led to a "climate of evident uncertainty regarding possible developments".
Because of that, Mr Letta would go before parliament to see "what could be done".Because of that, Mr Letta would go before parliament to see "what could be done".
Mr Letta clearly believes his centre-left grouping still has a chance of attracting enough support in parliament to continue in government, says the BBC's Alan Johnston in Rome. Mr Letta clearly believes his centre-left grouping, led by the Democratic Party (PD), still has a chance of attracting enough support in parliament to continue in government, says the BBC's Alan Johnston in Rome.
President Napolitano is trying to bring about the formation of a new coalition without calling elections.
"The president of the republic dissolves the parliament only in case there is no chance of finding a majority and therefore a new government in the interest of the country," he said before Sunday evening's meeting with Mr Letta.
The crisis follows weeks of worsening ties between Berlusconi's party and Mr Letta's grouping.The crisis follows weeks of worsening ties between Berlusconi's party and Mr Letta's grouping.
Berlusconi's People of Freedom (PDL) objects to a planned increase in sales tax, which is part of wider government policy to reduce big public debts. Berlusconi's legal problems have cast a long shadow over the coalition, with the former PM threatening to undermine it if he was expelled from the Senate for tax fraud.
But Berlusconi's legal problems had already cast a long shadow over the coalition, with the former PM threatening to undermine it if he was expelled from the Senate for tax fraud.
A committee of the Senate is due to decide on his expulsion this week after the Supreme Court recently upheld his conviction.A committee of the Senate is due to decide on his expulsion this week after the Supreme Court recently upheld his conviction.
Challenge 'Unacceptable'
The current coalition government was put together after inconclusive elections in February, and the latest developments come against the background of Italy's struggling economy, the eurozone's third-largest.
It is feared that the crisis could hamper efforts to enact badly-needed reforms to tackle Italy's economic problems, including debt, recession and high youth unemployment.
The International Monetary Fund has warned that coalition tensions represent a risk to the Italian economy.
Mr Letta warned late on Friday that he would resign unless his coalition cabinet won a confidence vote.Mr Letta warned late on Friday that he would resign unless his coalition cabinet won a confidence vote.
But Berlusconi pre-empted that, describing Mr Letta's comments as "unacceptable". He later said all five ministers of his PDL party were resigning. But Berlusconi pre-empted that, describing Mr Letta's comments as "unacceptable". He later said all five ministers of his People of Freedom (PDL) party were resigning.
However, most of the five ministers appeared to challenge the former prime minister's order to leave the coalition.However, most of the five ministers appeared to challenge the former prime minister's order to leave the coalition.
"I thoroughly understand his state of mind, but I cannot justify or share the strategy," said Health Minister Beatrice Lorenzin. Reforms Minister Gaetano Quagliarello and Transport Minister Maurizio Lupi also appeared reluctant to pull out of the cabinet."I thoroughly understand his state of mind, but I cannot justify or share the strategy," said Health Minister Beatrice Lorenzin. Reforms Minister Gaetano Quagliarello and Transport Minister Maurizio Lupi also appeared reluctant to pull out of the cabinet.
"We want to stay with Berlusconi but not his poor advisers," Mr Lupi said."We want to stay with Berlusconi but not his poor advisers," Mr Lupi said.
Mr Letta had responded angrily to Saturday's resignations, accusing the PDL leader of telling Italians a "huge lie" in using the sales tax as an "alibi" for his own personal concerns.Mr Letta had responded angrily to Saturday's resignations, accusing the PDL leader of telling Italians a "huge lie" in using the sales tax as an "alibi" for his own personal concerns.
'Desperate gestures'
Italian press commentators on Monday voiced alarm about the turn of events.
Ferruccio De Bortoli in the centre-right Corriere della Sera wrote that "the irresponsible choice of Berlusconi and his loyalists... has the bitter taste of rash and desperate gestures. It serves no purpose.
"It doesn't alter by an inch [Berlusconi's] judicial fate, but pushes a country held hostage to the edge of a new chasm."
But in the pro-Berlusconi daily Il Giornale commentator Alessandro Sallusti said the prime minister's taxes "have made the government fall".
"With Letta gone, we don't know what will happen. But today we have one thing confirmed: those who want more taxes are incompatible with Forza Italia [Berlusconi's name for PDL]."
Mario Calabresi in the centrist daily La Stampa said "we know for certain that the majority of politicians in the PDL does not approve of this decision [to quit].
"It's about time they found the dignity and strength not to confuse their affection, loyalty and gratitude to the Chief with the acceptance of a gesture that harms the whole country."
Francesco Bei in the centre-left La Repubblica said "members of the government admit that a ruinous scenario could come about shortly: a rise in interest rates, a spread that is out of control, and a new downgrading for Italy".