They may have been all smiles back in April, but underneath lay an uneasy coalition, and one which is now on the brink of unravelling. Ministers of Silvio Berlusconi’s centre-right PSL party are to resign from the Italian government. It comes in response to Prime Minister Enrico Letta’s request for a confidence vote next week, if fiscal measures were not agreed. It also makes good on a promise to resign after Berlusconi’s Senate seat was threatened following a conviction for tax fraud. Letta’s ultimatum came on Friday after the cabinet failed to agree on measures to bring the budget deficit in line with EU limits. It appears the centre-right pre-empted Letta’s resignation citing the tax hike as the reason, which did not go down well with their centre-left PD coalition partners. Euronews
Of course their yields on government debt went up about a half point. Italy will screw this thing up.
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