Italian PM wins crucial vote confidence

Italian PM wins crucial vote confidence

Silvio Berlusconi, Italian Prime Minister

Italian Prime Minister, Silvio Berlusconi, has won a crucial vote of confidence on Friday, giving his struggling centre-right government a new, but probably short, lease of life.

Berlusconi, who said before the vote that the country would be thrown into economic and social catastrophe if his government collapsed now, won the vote 316 for and 301 against.

The result was in doubt until the last minute and even some centre-right members expressed uncertainty and showed nervousness before the vote on whether the government would pull through.

The situation was so tense that some in the centre-right went into last-minute horse-trading meetings with Berlusconi, who is trying to contain a rebellion in his coalition.

There was even doubt until the last minute if the quorum making the vote valid existed since most of the opposition boycotted the first round of the vote.

One coalition parliamentarian, Francesco Nucara, told the chamber he was voting to save the government for the good of the country but openly expressed dissent with the way Berlusconi was running the centre-right and his choice of ministers.

In an address before the vote, Nucara said: "You have put some people in your government who would not be worthy to be doorkeepers in some of your companies."

The prime minister's administration has been plagued by scandals, economic stagnation and intense pressure from financial markets.

Berlusconi was forced to call the vote after his divided and undisciplined coalition suffered an embarrassment when it failed to pass a routine budget provision on Tuesday.

Immediately after the vote, the prime minister held a cabinet meeting to re-present the budget measure defeated on Tuesday, a result that Berlusconi wrote off as just an "accident" because some parliamentarians arrived late.

Further uncertainty envisaged

While the vote gave Berlusconi a reprieve, analysts say it will be just a matter of months only before a new crisis hits, and Italy is likely to hold elections next spring, a year early.

In a note to clients, Barclays Capital called the results: "A confidence vote that doesn't give much confidence."

"In many ways, this is the worst possible outcome at a time when the eurozone itself is in disarray. It will do little to stop the rot and exposes Italy and the eurozone to further uncertainty in the coming weeks and months," said Nicholas Spiro of Spiro Sovereign Strategy in London.

Multiple challenges

Berlusconi told parliament on Thursday the fall of his government would be "a victory for those who want to see (Italy) fall into decline, catastrophe and the kind of speculation we have seen for months in Europe and Italy."

"Berlusconi has by now become a factor that is immobilising and freezing Italian politics."

A number of centre-right deputies were absent from Tuesday's vote, infuriating Berlusconi and feeding suspicions that some stayed away to raise their bargaining power in the coalition.

He is facing internal challenges from a number of ministers, most notably from Economy Minister Giulio Tremonti, who are unhappy with his leadership and the damage his personal and legal woes have done to Italy's reputation.

The prime minister is on trial in four separate cases, accused of fraud, corruption and paying for sex with a minor.

REUTERS/Williams