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Friday, 14 October 2011 - Berlusconi faces confidence vote; seen surviving for now |
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Sun, Oct 9 2011 Berlusconi faces confidence vote; seen surviving for now Tweet Share this Email Print Factbox Factbox: Coming events in the euro zone debt crisis Thu, Oct 13 2011 Related News Berlusconi seeks confidence vote, expects to win Thu, Oct 13 2011 Europe eyes bigger Greek losses for banks Wed, Oct 12 2011 Italian turmoil haunts euro zone Wed, Oct 12 2011 Berlusconi seeks confidence vote to save coalition Wed, Oct 12 2011 Analysis & Opinion Failing the Syria test It takes lots of plastic to be the Man of Steel Related Topics World » Italy » Italy's Prime Minister Silvio Berlusconi makes his speech at the Parliament in Rome October 13, 2011. Credit: Reuters/Alessandro Bianchi By Gavin Jones ROME | Fri Oct 14, 2011 3:32am EDT ROME (Reuters) - Italy's Prime Minister Silvio Berlusconi is expected to scrape through a vote of confidence on Friday, despite the scandals, economic stagnation and intense pressure from financial markets plaguing him and his administration. Berlusconi was forced to call the vote, to be held in the Chamber of Deputies early afternoon, after his divided center-right government suffered a major embarrassment when it failed to pass a routine budget provision on Tuesday. He is seen surviving for now, just as he has survived many such votes, because squabbling factions in his coalition are still not ready to replace him. "If a group of deputies inside his People of Freedom party had a precise strategy then probably Berlusconi's days would be numbered, but we are not there yet," political commentator Sergio Romano told Reuters. Voting is scheduled to start at around 1030 GMT, with the result expected after 1200 GMT. Analysts say even if the 75-year-old premier wins, it will be a matter of months only before a new crisis hits, and the country is likely to hold elections next spring, a year early. "It's very probable that Berlusconi will win confidence in parliament today," said Massimo Franco in newspaper Corriere della Sera. "But the anxiety and fatigue of the ruling majority does not point to any revival. If anything, it increases the sense of a government limping toward the terminus, hoping to make it to the end of the year without being forced to stop earlier." Berlusconi told parliament on Thursday the fall of his government would be "a victory for those who want to see (Italy) fall into decline, catastrophe and the kind of speculation we have seen for months in Europe and Italy". Many analysts see the opposite as true, and see Berlusconi's ineffectiveness in the face of crisis bringing either snap elections or an unelected government of technical experts, which they say would be preferable to the current malaise. Nicholas Spiro, head of debt consultancy firm Spiro Sovereign Strategy, said a "Berlusconi premium" had been built into Italy's borrowing costs. His political demise "could trigger a favorable re-assessment of Italy in the minds of international investors, particularly if a non-partisan technocratic cabinet took office", Spiro said. DISSENTERS Several newspaper editorials on Friday highlighted the lack of new ideas in Berlusconi's speech to parliament, describing him as paralyzed by a fear of aggravating tensions in his coalition. "Not one new thought was expressed. Absolutely nothing. A complete vacuum," said Luca Ricolfi in La Stampa daily. "Berlusconi has by now become a factor that is immobilizing and freezing Italian politics." A number of center-right deputies were absent from Tuesday's vote, infuriating Berlusconi and feeding suspicions that some stayed away to raise their bargaining power in the coalition. On Thursday, Berlusconi described the episode as an "accident" and insisted the center-right bloc was united. He is facing internal challenges from a number of ministers, most notably from Economy Minister Giulio Tremonti, who are unhappy with his leadership and the damage his personal and legal woes have done to Italy's reputation. The prime minister is on trial in four separate cases, accused of fraud, corruption and paying for sex with a minor. President Giorgio Napolitano entered the fray this week, expressing deep concern about the viability of government and demanding a "credible response" to Italy's acute problems. A Reuters survey of about 20 analysts said on Thursday that Italy was already in recession, would barely muster any growth in 2012 and would miss the government's fiscal deficit targets. Its sovereign debt has been downgraded in the past month by Standard & Poor's, Moody's and Fitch, and since early August it has relied on the European Central Bank to buy its bonds to prevent yields rising to unsustainable levels. (Additional reporting by Catherine Hornby; Editing by Alison Williams) World Italy Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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