Italian technocratic PM ready to step down after Berlusconi desertionFeatured, Finance Friday, December 14th, 2012
Following the revelation that the Center-right party of former Italian PM Silvio Berlusconi no longer supports the current administration by the technocratic Prime Minister Mario Monti, the latter has talked of resignation in time for election in less than 90 days’ time.
Even as this news emerges, it is still unclear if Mr. Monti, whom many analysts say has returned Italy back on track after he took over post-Berlusconi administration’s financial woes, will participate in the February vote.
On Thursday last week, Mr. Berlusconi, the flamboyant politician who has helped the center-right hold sway in the Italian parliament for close on two decades, and who resigned under public outrage against levy evasion and child sex saga, has barraged Monti with accountability backlash. He said that the outgoing PM has entered into German shoes and entered the 3rd richest country in the Eurozone into “recession.”
He reiterated that the so-called spread that has seen the margin separating Italy-Germany bonds grow wider, as of December 11, is as an artificial financial trick, similar in magnitude to the very one that helped rein in his last administration.
Berlusconi also exposed what he feels as a German innuendo to step the country further into debt, and possible austerity, after the interest margin for Italy’s external borrowings soared by a two percentage margin in 12 months.
No moment could be harder for a backlash from the former PM for Monti’s current government than when the parliamentary vote was looming in February 2013.
The strategic underpinning of Mario Monti’s term in office also elicited the words “responsibility” as well as “love” for his nation, with regard to Mr. Berlusconi’s self-reference as to the reasons he had stepped earlier in favor of Monti who was seen as a good candidate to patch up an Italian economy then heading for austerity.
Though his party PDL is still behind a center-left outfit, according to pollsters, the ex-PM still believes he can go to the polls strong enough to saturate the balance of power in a polarized parliament, if not win the vote outright. Berlusconi is also under threat of imprisonment for four years, in a levy fraud case that is under appeal even as child molestation in strip club puts him under trial.
Silvio Berlusconi is now aged 76.