26 Sep 2013
Political uncertainty increases in Italy after Berlusconi's MPs walkout threat
FXstreet.com (Barcelona) - Following earlier reports of Italian President Giorgio Napolitano's preoccupation with a “sudden political development”, the Italian newswire ANSA explained that it concerned threats made by Silvio Berlusconi's Forza Italia party to resign from the parliament should their leader be voted out of the Senate over tax fraud conviction.
Such an en masse resignation would be catastrophic for PM Enrico Letta's government, which is currently tryiung to contain the excessive budget deficit and public debt.
President Napolitano issued a statement condemning the Forza Italia members' stance, which he labeled as "institutionally disturbing." He emphasized that such a move would undermine the functioning of the government and said that suggestions of Berlusconi's conviction being a "coup d'etat" were "absurd". He urged the MPs to find another way of expressing support for their leader, “without putting at risk the functioning of the two houses of parliament.”
All these developments took place in the absence of PM Enrico Letta in the country, as he is currently visiting New York. He has already announced however that he would start negotiations with the parties supporting his cabinet parties as soon as he arrives in Rome.
In response to the political instability Italian borrowing costs spiked on Thursday to 4.32% from 4.24% registered the day before.
Such an en masse resignation would be catastrophic for PM Enrico Letta's government, which is currently tryiung to contain the excessive budget deficit and public debt.
President Napolitano issued a statement condemning the Forza Italia members' stance, which he labeled as "institutionally disturbing." He emphasized that such a move would undermine the functioning of the government and said that suggestions of Berlusconi's conviction being a "coup d'etat" were "absurd". He urged the MPs to find another way of expressing support for their leader, “without putting at risk the functioning of the two houses of parliament.”
All these developments took place in the absence of PM Enrico Letta in the country, as he is currently visiting New York. He has already announced however that he would start negotiations with the parties supporting his cabinet parties as soon as he arrives in Rome.
In response to the political instability Italian borrowing costs spiked on Thursday to 4.32% from 4.24% registered the day before.