He has seen several defections among supporters in the last few days over political uncertainties ever after Berlusconi managed to win a vote of confidence recently. The defections caused the government to miss having a majority in a budget vote. However, it passed due to abstentions.
Many see this as an end of the Berlusconi’s political carrier. Berlusconi’s comments last week during the G-20 meeting in Cannes, France sparked uncertainty in Europe. There are serious doubts about Italy’s Italy’s creditworthiness and the ability of its government to address the problem.
Berlusconi has accepted the policy monitoring by the International Monetary Fund but stressed that the country does not need the fund’s financial help. He even refused to accept a low interest loan saying there is no crisis in the country.
The move shook the market confidence on the Italian government’s ability to resolve financial crisis. Yields on Italian bonds approached 7 percent and lenders appear to perceive Italian bonds as the debts of Greece, Ireland and Portugal, which were forced to seek assistance form the international bodes.
After his resignation, the President might appoint a person from outside the political circles to speed up the implementation of the fiscal decisions needed to sort out the country’s worries.
AFP