Italy’s political chaos could spell further elections, market uncertainty and economic turmoil, analysts warn.
Italian prime minister Enrico Letta is to go before parliament on Wednesday for a confidence vote after five ministers belonging to Silvio Berlusconi’s “People of Liberty” party (PdL) resigned from the cabinet over the weekend. The PdL move has threatened to plunge the fragile coalition government and the euro zone’s third-largest economy in chaos.
The weekend’s events won’t surprise many as the coalition government – made up of Berlusconi’s center-right and Letta’s center-left parties – tensions over reforms have meant that it has long been on the verge of collapse ever since its awkward inception in April. In addition, Berlusconi had already threatened to withdraw his ministers if he is expelled from the Senate for a tax fraud conviction he received in August.
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