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italian government

Italy’s PM Enrico Letta has threaten to resign unless his cabinet gets clear backing in a parliamentary vote expected to be called next week.

Enrico Letta’s warning came after the government failed to approve key budget measures.

His government is an unstable coalition between his party and that of ex-PM Silvio Berlusconi.

Silvio Berlusconi could lose his Senate seat after his fraud conviction. His backers say they would leave the cabinet in protest.

“I have no intention of limping along or being the subject of continuous threats,” Enrico Letta said in a statement after the government meeting late on Friday.

“Either we go forward, and the interests of the country and citizens are put first, or this experience ends here.”

PM Enrico Letta has threaten to resign unless his cabinet gets clear backing in a parliamentary vote expected to be called next week

PM Enrico Letta has threaten to resign unless his cabinet gets clear backing in a parliamentary vote expected to be called next week

Two government ministers said that Enrico Letta was now planning to call a confidence vote in parliament next week.

The cabinet is close to collapse just at a time when Italy desperately needs political stability if it is to begin to emerge from its long economic crisis.

If Silvio Berlusconi’s PDL pulled out of the government, it would lead to snap elections.

President Giorgio Napolitano and business leaders have warned against new polls while is still mired in recession, saying they could reignite fears about the country’s stability and financial position.

According to a 2012 anti-corruption law, Silvio Berlusconi should be ejected from the upper house after the Supreme Court last month upheld his fraud conviction.

After a party meeting on Wednesday, Silvio Berlusconi’s MPs threatened to resign en masse if the Senate votes next week o expel their mentor.

The Italian news agency Ansa cited sources who said PDL members were already writing out their resignations and threatening to hand them in to the party whips.

Silvio Berlusconi has been sentenced to a year in prison, but because of his age is expected to serve house arrest or community service.

It was his first conviction to be confirmed on appeal in two decades of fighting legal cases.

Last week Silvio Berlusconi vowed to stay in politics even if he lost his place in the Senate.

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A man has been arrested in Italy after he shot two police officers outside the PM’s office in Rome during new government swearing-in ceremony.

One of the officers was shot in the neck and is said to be in a serious condition.

The incident was around a kilometre away from the swearing-in ceremony at the Quirinal Palace.

Democratic Party Deputy Leader (PD), Enrico Letta, becomes prime minister at the head of a “grand coalition” including Silvio Berlusconi’s People of Freedom party (PDL).

The swearing-in signals the end of two months of political deadlock.

Correspondents say the “grand coalition” between Italy’s current main right- and left-wing parties is unprecedented, and will probably prove an uneasy alliance.

A man has been arrested in Italy after he shot two police officers outside the PM's office in Rome during new government swearing-in ceremony

A man has been arrested in Italy after he shot two police officers outside the PM’s office in Rome during new government swearing-in ceremony

Silvio Berlusconi had said he would not be a minister, but had pushed for leading figures from his party to be given top posts.

Angelino Alfano, the PDL’s secretary and one of Silvio Berlusconi’s closest political allies, is deputy prime minister and interior minister in the new government.

Among the other key appointments is Bank of Italy director general Fabrizio Saccomanni to head the powerful economy ministry.

The cabinet is to have more women than usual, including former European Commissioner Emma Bonino as foreign minister.

Other women given government jobs include Olympic kayaker Josefa Idem who becomes minister of equal opportunity and sports, and Anna Maria Cancellieri at the ministry of justice.

Since February’s inconclusive poll there has been political stalemate in Italy, which is still plagued by economic woes after becoming one of the first eurozone victims of the global financial crisis of 2008.

President Giorgio Napolitano said on Saturday that the government would have the support of both chambers of parliament.

“I hope that this government can get to work quickly in the spirit of fervent co-operation and without any prejudice or conflict,” the president said.

“It was and is the only possible government.”

President Giorgio Napolitano, who is serving an unprecedented second term in Italy, has suggested he might resign if the new government fails to enact reforms.

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A deal on the formation of a new government has been reached in Italy, ending two months of political deadlock since the general election.

The agreement was announced after Prime Minister-designate Enrico Letta met President Giorgio Napolitano.

The coalition brings together Enrico Letta’s Democratic Party (PD) and the People of Freedom party (PDL) of former PM Silvio Berlusconi.

The swearing-in is to take place on Sunday at 11:30 local time.

Silvio Berlusconi had said he would not be a minister, but had pushed for leading figures from his party to be given top posts.

Angelino Alfano, the PDL’s secretary, will become deputy prime minister and interior minister in the new government.

Among the other key appointments proposed, Bank of Italy director general Fabrizio Saccomanni will head the powerful economy ministry and former European Commissioner Emma Bonino will become foreign minister.

Italian Prime Minister-designate Enrico Letta has agreed new government ending two months of political deadlock

Italian Prime Minister-designate Enrico Letta has agreed new government ending two months of political deadlock

The formation of the new government brings to an end a political deadlock that has unnerved financial markets since February’s inconclusive election.

President Giorgio Napolitano said the government would have the support of both chambers of parliament.

“I hope that this government can get to work quickly in the spirit of fervent co-operation and without any prejudice or conflict,” he said.

“It was and is the only possible government.”

The new government has to deal with a rapidly declining economic situation, rising unemployment – particularly among under the 35s – and lack of growth, despite some draconian austerity measures passed by the previous government of technocrats.

Enrico Letta, 46, is considered a moderate within the PD and is linked to Silvio Berlusconi through his uncle, Gianni Letta, who is one of Berlusconi’s closest aides.

Silvio Berlusconi is still contesting charges of tax fraud and sex with an underage prostitute, but recent opinion polls suggest his popularity has increased, giving him greater bargaining power.

Enrico Letta expressed “sober satisfaction over the team we put together”.

He has said he will shift the focus away from austerity to resolve Europe’s economic problems.

Enrico Letta’s candidacy for prime minister emerged after the PD leader, Pier Luigi Bersani, announced his resignation following a party rebellion over his choice for Italian president and his refusal to work with Silvio Berlusconi.

The third strongest force to emerge from the Italian election, the Five Star movement led by former comedian, Beppe Grillo, has refused to take part in a coalition with the two main parties.

He likened such a coalition to “an orgy worthy of the best of bunga bunga” in a barb directed at Silvio Berlusconi’s renowned private parties.

President Giorgio Napolitano, who is serving an unprecedented second term, has suggested he might resign if a new government fails to enact reforms.

Italian government – proposed posts:

  • Enrico Letta, 46: Prime minister
  • Angelino Alfano, 42: Deputy PM and interior  minister
  • Fabrizio Saccomanni, 70: Economy minister
  • Emma Bonino, 65: Foreign minister
  • Anna Maria Cancellieri, 69: Justice minister
  • Enrico Giovannini, 55: Labour minister
  • Mario Mauro, 51: Defence minister

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Italian comedian-turned-politician Beppe Grillo, whose Five-Star Movement (M5S) defied expectations to come third in last weekend’s elections, has ruled out a coalition with Pier Luigi Bersani’s centre-left bloc.

Pier Luigi Bersani’s Democratic Party (PD) won a majority in the Chamber of Deputies but fell short in the Senate.

Beppe Grillo said he expected Pier Luigi Bersani to agree a deal with Silvio Berlusconi’s People of Freedom (PdL).

The inconclusive polls have pushed up borrowing costs for the government.

On Wednesday, the Italian treasury sold 4 billion euros of new 10-year government bonds on the financial markets at a yield of 4.83%, up from 4.17% at its last sale in January, and 2.5 billion euros of new five-year bonds at a yield of 3.59%, up from 2.94%.

The latest rates are seen as bearable, but that the rises signal that investors want to see a strong Italian government, committed to economic reforms.

It is certainly possible that borrowing costs will rise further if the political uncertainty drags on for a long period.

Beppe Grillo said he would not support any new government and he expected fresh elections to be held within a year.

“Today in Italy, what will happen is what happened before. The right and the left will get together and will govern a country of rubble that they are responsible for,” he said.

“It will last a year. One. Maximum. Then there will be elections again. And once again, in the elections, the Five-Star movement will change the world,” he added.

Beppe Grillo, whose M5S defied expectations to come third in last weekend's elections, has ruled out a coalition with Pier Luigi Bersani’s centre-left bloc

Beppe Grillo, whose M5S defied expectations to come third in last weekend’s elections, has ruled out a coalition with Pier Luigi Bersani’s centre-left bloc

Beppe Grillo, 64, said the M5S would decide whether to support specific legislation on a case-by-case basis.

Any attempts to persuade the movement to take part in a government were fake, he asserted.

Beppe Grillo also rejected the suggestion that he was inciting popular anger, saying he should be thanked for giving angry people hope.

“There was no hope. It was an anger without hope. It is anger without hope that creates violence,” he explained.

“But anger with hope is a different kind of anger, an optimistic anger, it is not negative. We are containing this rage, so they should thank me. It is a democratic rage that is needed to go forward.”

On his blog, Beppe Grillo also published a mocked-up film poster depicting Pier Luigi Bersani as a Dead Man Talking, based on the 1950 Italian comedy, 47 Morto Che Parla.

“Bersani is a political stalker,” Beppe Grillo wrote.

“It’s been days that he has been bothering the M5S with indecent proposals rather than resigning [the leadership of the PD], as anyone else would have done in his place.”

The Democratic Party and its centre-left allies won a narrow victory in the Chamber of Deputies, but the Senate appears split with no party in control.

Silvio Berlusconi’s centre-right coalition is the second biggest bloc in the upper house. The seats under Beppe Grillo’s control in both houses could therefore prove crucial in making any coalition government viable.

On Tuesday, Pier Luigi Bersani outlined a series of policies for a PD-led government which appeared to mostly be in line with M5S’s manifesto.

He said any groups backing the government would have to vote for it in the confidence motion required when a new administration takes office, and urged Beppe Grillo to “assume his responsibilities”.

Meanwhile, a German opposition leader has made waves by describing Beppe Grillo and Silvio Berlusconi as “clowns”.

The Social Democratic Party’s candidate for chancellor, Peer Steinbrueck, told a rally in Potsdam that he was “shocked to a certain degree that two clowns have won” the Italian elections and made it clear he was referring to the two party leaders, calling the former prime minister “definitely a clown with a special testosterone boost”. Silvio Berlusconi has been embroiled in a series of sex scandals.

Italian President Giorgio Napolitano cancelled a dinner with Peer Steinbrueck after learning of his remarks, a spokesman for the SPD candidate said.

Giorgio Napolitano is still due to meet Chancellor Angela Merkel in Berlin on Thursday.

Both Beppe Grillo and Silvio Berlusconi campaigned against the austerity measures imposed by Italy’s technocratic Prime Minister, Mario Monti, which were supported by Angela Merkel.

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Italy has begun voting in general elections seen as crucial for the country’s effort to tackle its economic problems, as well as for the eurozone.

Estimates published before a ban on polls two weeks ago gave a lead to Pier Luigi Bersani’s centre-left alliance.

It was thought to be a few points ahead of the centre-right bloc led by ex-Prime Minister Silvio Berlusconi.

On Saturday, Silvio Berlusconi gave a TV interview – in what his opponents said was a breach of the campaigning ban.

However, Silvio Berlusconi’s office later said the interview had been granted only with the explicit agreement that it would be broadcast after polls close on Monday.

A centrist coalition led by outgoing Prime Minister Mario Monti is also running in the election, held on Sunday and Monday.

And opinion polls suggested there would be a strong turnout for popular comedian Beppe Grillo’s anti-establishment movement.

The election was called two months ahead of schedule, after Silvio Berlusconi’s party withdrew its support for Mario Monti’s technocratic government.

The voting is taking place amid a deep recession and austerity measures that have caused widespread public resentment.

It is also being closely watched in the eurozone, with the Italian government’s future commitment to austerity measures particularly under scrutiny.

Italy has begun voting in general elections seen as crucial for the country's effort to tackle its economic problems, as well as for the eurozone

Italy has begun voting in general elections seen as crucial for the country’s effort to tackle its economic problems, as well as for the eurozone

On the first voting day on Sunday, polls across Italy opened 08:00 and will close at 22:00.

The voting will resume again on Monday at 08:00 and finish at 15:00. First results are expected in the early evening.

Some 47 million eligible voters are electing both chambers of parliament – the The Chamber of Deputies and the Senate.

The electoral system is based on proportional representation and party lists, with a series of thresholds to encourage parties to form coalitions.

Pier Luigi Bersani’s centre-left Democratic Party (PD) has been a consistent frontrunner in the opinion polls at nearly 35%.

Pier Luigi Bersani, a former Communist, has pledged to continue with Mario Monti’s reforms, but suggests current European policy needs to do more to promote growth and jobs.

However, recent weeks have seen a narrowing of his lead over Silvio Berlusconi’s People of Freedom (PdL) alliance, who is critical of austerity measures.

Beppe Grillo’s Five Star Movement (M5S) was running third in the polls.

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The entire council of the city of Reggio Calabria in southern Italy has been sacked to stop it from being taken over by the mafia, officials say.

The move came after some councilors were suspected of having ties to the powerful ‘Ndrangheta crime syndicate.

Officials said it was the first time that the entire government of a provincial capital had been dismissed over suspected mafia links.

Three commissioners will run the city for 18 months until elections.

Mayor Demetrio Arena and all 30 city councilors were sacked to prevent any “mafia contagion” in the local government, Interior Minister Annamaria Cancellieri said.

Smaller city administrations have been dissolved in the past for similar reasons.

Calabria is the home of the ‘Ndrangheta, which experts say has become one of the world’s biggest criminal organizations.

Cocaine is thought to be its biggest source of revenue, along with extortion and money laundering.

Italy’s parliamentary anti-mafia commission has described the ‘Ndrangheta as the country’s most dangerous – and richest – mafia.

The network has used the migration of poor Calabrians to northern Italy or abroad to export its influence.