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| Italy crisis: PM Letta battles for parliament support | Italy crisis: PM Letta battles for parliament support |
| (2 days later) | |
| Italian Prime Minister Enrico Letta is battling to rescue his coalition after five ministers loyal to former PM Silvio Berlusconi pulled out. | 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. |
| Tensions are running high between Mr Letta's centre-left grouping and Mr Berlusconi's centre-right party. | Tensions are running high between Mr Letta's centre-left grouping and Mr Berlusconi's centre-right party. |
| 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. | 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 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. | 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 | 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%. | 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 Giorgio 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, 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. | 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. |
| 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 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. | 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. |
| 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. |
| 'Unacceptable' | 'Unacceptable' |
| 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 People of Freedom (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. |
| The February election failed to produce a clear majority for centre-left or centre-right. | The February election failed to produce a clear majority for centre-left or centre-right. |
| The narrow victory for the centre-left, led by the PD, gave it 55% of the seats in the Chamber of Deputies automatically. | The narrow victory for the centre-left, led by the PD, gave it 55% of the seats in the Chamber of Deputies automatically. |
| But in the Senate there is no automatic majority. There the difference is just a few seats - and the government needs to control the Senate to rule effectively. | But in the Senate there is no automatic majority. There the difference is just a few seats - and the government needs to control the Senate to rule effectively. |