Gavin's Feed
Oct 2, 2013

Alfano turns on his master in bid to lead Italy’s right

ROME (Reuters) – Angelino Alfano may have changed the future of Italian politics by leading the internal party revolt that thwarted Silvio Berlusconi’s attempt to bring down the country’s coalition government.

Few thought he had it in him. The 42-year-old former Christian Democrat from Sicily was considered so loyal to Berlusconi that his name had become almost a by-word for subservience.

Oct 1, 2013

Italy political crisis spells good news for public finances

ROME (Reuters) – Financial markets are fretting over the latest bout of political turmoil in Italy but the absence of an operational government has sharply improved the chances that Rome can rein in its budget deficit as planned this year.

Silvio Berlusconi’s decision to withdraw his ministers from Enrico Letta’s government has halted plans for tax cuts that risked pushing the budget deficit above the European Union’s ceiling of 3 percent of national output.

Sep 30, 2013

Berlusconi in new storm as relations sour with president

ROME (Reuters) – Silvio Berlusconi was at the center of a new storm on Monday after a private phone call in which he made assertions about President Giorgio Napolitano was aired on television, prompting a furious reaction from the president.

A current affairs program on private channel La 7 broadcast a phone tap in which Berlusconi said he had been informed that Napolitano had exerted influence on Italy’s top appeals court in a case involving Berlusconi’s media empire.

Sep 29, 2013

Italian president hopes to solve political crisis without new vote

ROME (Reuters) – Italian Prime Minister Enrico Letta will meet the president on Sunday to try to chart a way out of a deep political crisis after Silvio Berlusconi pulled his ministers out of the government and called for new elections.

President Giorgio Napolitano said he would only dissolve parliament as a last resort but just seven months after the last vote it is not clear if an alternative majority can be found.

Sep 26, 2013

Italy’s divided coalition to seek to plug budget hole on Friday

ROME (Reuters) – Italy’s fractious coalition government will try to work out on Friday how to avert a planned rise in sales tax while reining in a budget deficit which is overshooting European Union limits.

Silvio Berlusconi’s People of Freedom party (PDL), a key partner in Enrico Letta’s fragile left-right coalition, has threatened to bring down the government unless it abandons the sales tax hike, due to take effect in October.

Sep 24, 2013

New Italian targets show lack of progress since Berlusconi’s fall

ROME, Sept 24 (Reuters) – Italy’s latest economic forecasts
reveal how little progress has been made to fix its finances and
restore growth since Silvio Berlusconi was forced from office at
the height of the euro zone debt crisis in November 2011.

With bond yields soaring, Berlusconi bowed to a demand by
the European Central Bank that Italy balance its budget in 2013
rather than 2014 as planned, to try to convince markets it could
curb a huge public debt then equal to 120 percent of output.

Sep 20, 2013

Italy cuts growth outlook, frets over instability

ROME, Sept 20 (Reuters) – Italy cut its forecasts for the
economy on Friday and pledged to correct a budget deficit that
is set to overshoot EU limits as coalition in-fighting threatens
the government’s ability to make reforms needed to spur growth.

Prime Minister Enrico Letta told reporters the tensions
which are undermining the stability of his broad left-right
administration would have to end for it to counter a prolonged
recession and consolidate Italy’s strained public finances.

Sep 19, 2013

Italy to slash GDP forecasts on Friday, hike debt, deficit

ROME (Reuters) – Italy’s government will slash its forecasts for economic growth and raise its projections for the fiscal deficit and public debt when it issues new forecasts on Friday, according to officials and leaked documents.

According to the new figures, to be released after they are approved at a cabinet meeting, gross domestic product will shrink by around 1.7 percent this year, down from a forecast of -1.3 percent made in April. The meeting starts at 0800 GMT.

Sep 12, 2013

Italy industry output dives, dampening recovery hopes

ROME (Reuters) – Italian industrial output was much weaker than expected in July, falling 1.1 percent and pouring cold water on hopes that the country might emerge from its longest post-war recession in the third quarter.

After moderately encouraging recent signs from business and consumer sentiment indicators, July’s industrial output, which posted the steepest fall since November last year, was the first important piece of hard data relating to the third quarter.

Sep 5, 2013

Italy finances slipping as political crisis brews

ROME (Reuters) – Italy, which three months ago got off the European Union’s blacklist of countries with excessive fiscal deficits, may be put straight back on it next year unless it can reverse a worrying trend in its public finances.

Enrico Letta’s government has been forced to respect the tax cutting promises of Silvio Berlusconi’s People of Freedom Party (PDL), a vital part of the ruling coalition, while a deeper than expected recession is also weighing on state accounts.