Italian Prime Minister Berlusconi resigns

 

Deutsche Welle

Italian Prime Minister Silvio Berlusconi has resigned after three terms in office over a 17-year period that has seen some of the worst political scandals in the country's post-war history. Berlusconi handed in his resignation to President Giorgio Napolitano on Saturday evening. This comes after parliament's lower chamber approved a new budget law intended to reverse a collapse of market confidence. The adoption of the law had been set by Berlusconi as a precondition for stepping down.

High public debt

Berlusconi lost his parliamentary majority earlier this week. His resignation will allow the formation of a transitional government that will be tasked with trying to pull the country out of its debt crisis. Italy, the eurozone's third-largest economy, has the second-highest public debt after Greece, running at 120 percent of gross domestic product. The new law had been called for by the European Union as an attempt to prevent Italy needing a bailout that the bloc could not afford. Talks with political parties on forming the interim government are expected to begin on Sunday. The new administration may be in place by Monday.

Possible opposition

 

Monti will face a huge challenge if he heads the transitional government 

Mario Monti, a former EU commissioner and respected economist, has been tipped as the most likely leader of the interim government.

However, there are already signs of opposition. Some in Berlusconi’s PDL party say they are ready to accept a government led by Monti, while others have declared their deep opposition.

The PDL’s main coalition partner, the Northern League, has said it will go into opposition. It has warned that the new government will not have the necessary broad parliamentary support to pass major reforms.

Corruption trials and sex scandals

The 75-year-old media mogul and billionaire Berlusconi first came to power in 1994. His three terms as prime minister have been tainted by corruption trials and accusations that he used his political power to advance his business interests. In addition, his last term has seen a number of sex scandals, including criminal charges over alleged payments for sex to a 17-year-old girl.

Berlusconi denies all accusations.

Author: Timothy Jones (AP, Reuters)
Editor: Andreas Ilmer