“Democratic Party leader Pier Luigi Bersani, whose coalition won the most votes in Italy’s inconclusive elections, insisted he would form a government on his own without seeking an alliance with his main rivals, ex- premier Silvio Berlusconi and comic-turned-politician Beppe Grillo.
“We have 460 parliamentarians, double what the right got and triple what Grillo won,” Bersani said in an interview last night on state-owned RAI3 television’s “Che Tempo Che Fa” program. “So we will have the first word.”
Bersani is trying to dispel concern about political paralysis in Italy after the Feb. 24-25 vote produced a hung parliament, with his forces controlling the Chamber of Deputies while falling far short of a majority in the Senate. So far, the Democratic Party leader has said he will go it alone, without explaining how he could win a confidence vote in the Senate needed to govern.
The possibility of reaching an alliance with Berlusconi, whose coalition lost to Bersani’s group in the Chamber by less than half a percentage point, was “unreal,” Bersani said. He also said he hadn’t met with Grillo about a possible accord and urged Grillo to move beyond his rhetoric that the old guard must go.
“He heads a movement that has a third of the Chamber, he needs to decide what he will do or we will all be sent packing, including Grillo,” Bersani said.
Limited Program
In an acknowledgment of his lack of broad support, Bersani said he would present a “limited and precise” government program focusing on eight points, including an anti-corruption law, measures against organized crime, a conflict of interest law and steps to reduce the cost of politics. All those initiatives would likely appeal to Grillo’s forces, who have campaigned against corruption both inside and outside of Italy’s political system.
The interview came hours after Bersani’s economic policy spokesman Stefano Fassina said the country may have to hold new elections “in a few months” if Bersani doesn’t get a majority in parliament. Fassina also said that the election law, which contributed to producing the split parliament, would have to be overhauled first.
Yield Surge
Italian bond yields surged after the elections ended in a four-way parliamentary split, raising doubt over the stability of the next government. Investors were looking to the election to produce a government capable of pulling Italy out of its fourth recession since 2001 and reduce a $2.6 trillion debt. Italy’s 10-year yield rose 6 basis points today to 4.852 percent, up 40 basis points from before the election.
Moody’s Investors Service said in a report Feb. 27 that the gridlock may reignite the euro-area’s debt crisis as turmoil in the bloc’s third-largest economy risks spilling over into weaker sovereign nations like Portugal and Spain….”
If you enjoy the content at iBankCoin, please follow us on Twitter
