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Monday, 13 December 2010 - Berlusconi warns of crisis ahead of crucial vote |
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    Edition: U.S. Article Comments (0) Slideshow Email Print Reprints Full Focus Editor's choice A selection of our best photos from the past 24 hours.  Full Article  Best pictures of the year Read Murdered Alabama children were tortured: documents 09 Dec 2010 WikiLeaks rival Openleaks "coming soon": website 8:48am EST Senate nears key vote on Obama tax package 8:41am EST "Black Swan" leads Critics' Choice award nominees 6:05am EST Armed man takes 15 children hostage at French nursery 4:39am EST Discussed 167 Obama unveils tax deal with Republicans 87 WikiLeaks founder Assange arrested in Britain 69 Special Report: STD fears sparked case against WikiLeaks boss Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Bill Clinton backs Obama tax plan Fri, Dec 10 2010 Berlusconi warns of crisis ahead of crucial vote Tweet This Share on LinkedIn Share on Facebook By James Mackenzie ROME (Reuters) - Italian Prime Minister Silvio Berlusconi said rebel lawmakers could pitch Italy into the middle of the euro zone's debt crisis if they voted against him in a no-confidence vote on Tuesday. Speaking in the Senate... Factbox Silvio Berlusconi's gaffes, quips and pranks 9:39am EST Related News Once-dominant Berlusconi fights for political life 7:27am EST Break with Berlusconi is latest U-turn for Fini 7:27am EST Related Topics World » Italy » Euro Zone » 1 / 2 Italian Prime Minister Silvio Berlusconi sits at the Senate in Rome December 13, 2010. Berlusconi faces confidence votes in parliament on Tuesday that could drive him from office or cement his reputation as one of the great survivors of Italian politics. Credit: Reuters/Alessandro Bianchi By James Mackenzie ROME | Mon Dec 13, 2010 9:39am EST ROME (Reuters) - Italian Prime Minister Silvio Berlusconi said rebel lawmakers could pitch Italy into the middle of the euro zone's debt crisis if they voted against him in a no-confidence vote on Tuesday. Speaking in the Senate a day before a showdown that could force him from office and trigger early elections, Berlusconi said his government had kept Italy out of the turmoil seen in Ireland or Greece but that the threat of instability remained. "It is madness to initiate a crisis without any foreseeable solutions," he said. A year of party infighting and corruption and sex scandals has hit Berlusconi's leadership credentials while a scandal over waste management in Naples has made piles of uncollected garbage an embarrassingly visible symbol of the government's weakness. On Tuesday, dubbed "B-Day" by Italian media, Berlusconi faces a no confidence motion in the lower house called by opposition and rebel center-right deputies and a confidence vote the government has tabled in the Senate where it has a majority. The 74 year-old media tycoon no longer enjoys a lower house majority following a bitter split in July with former ally Gianfranco Fini and a group of rebel center-right deputies who have broken away from the ruling PDL party. But after an intense campaign of lobbying and promises described by adversaries variously as a "cattle market" or "football transfer season," the government appears to have made up ground with wavering deputies. Some commentators estimate a result as close as 314 votes for Berlusconi against 313 for the opposition is possible. Whether that will be enough for longer term stability is unclear. Umberto Bossi, the bluntly spoken head of Berlusconi's Northern League coalition partners, expressed the skepticism of many when he said: "You can't govern with a one vote majority." The result of the Senate vote is expected at around 11.30 a.m. (1030 GMT), with the lower house result likely after 1.30 p.m. (1230 GMT). DEBT BURDEN Tuesday's vote is being closely watched by financial markets on high alert over the euro zone debt crisis, and a prolonged period of uncertainty or a divisive election campaign could turn the spotlight on Italy's strained public finances. Despite one of the heaviest debt burdens in the world at almost 120 percent of gross domestic product, Italy has largely escaped the turmoil seen in Greece and Ireland thanks to tight control of public spending and a conservative banking system that avoided excess during the market boom. Markets were reassured last week when the 2011 budget was passed in parliament but politicians on all sides are acutely aware of the danger of contagion. An alarming jump in the premium investors demand to hold Italian debt rather than benchmark German bonds last month underlined the risk, although the interest rate spread has since come back from the record levels it hit on November 30. 1 2 Next World Italy Euro Zone   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. 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. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook 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. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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