Italy's Berlusconi Wins Vote But Loses Majority; Resignation Calls Continue

The news out of Italy is a bit contradictory, so let’s see if we can sort it out. First, there was a vote in the Italian parliament (the Chamber of Deputies) Tuesday on a routine parliamentary measure relating to the ratification of 2010 public accounts. Although the measure being voted on wasn't significant, the outcome of the vote was.

The vote was technically “won” by Berlusconi as he procured an absolute majority of the votes cast.

However, the "win" carried with it significant consequenses. The key is that several deputies abstained on the vote. There are 630 seats in the parliament and with only 308 “yes” votes, Berlusconi wound up losing his majority in parliament.

Italy’s main opposition leader, Pier Luigi Bersani, who heads the Democratic Party, said that the vote showed that Berlusconi has lost his leadership role and asked for the Prime Minister to tender his resignation.

“The government doesn’t have a majority,” Bersani said Tuesday. He added that it is time for Berlusconi to step down for the good of the country. “We all know that Italy runs the real risk of not being able to access the financial markets in the next few days.”

Reports indicate that the opposition leader also told Berlusconi that if he does not resign, the opposition party will consider further steps. We assume this refers to the threat of the opposition asking the Italian president to call for a confidence vote.

Reuters is reporting that Berlusconi’s top ally has also asked the Prime Minister to step down.

Stocks have reacted negatively to the news that Berlusconi is still clinging to power.

 

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