Silvio Berlusconi, who has resisted calls to step down as prime minister of Italy, may be on the way out regardless, if former party loyalists continue to rebel. The failure of his Cabinet to find consensus on an economic reform program could drive him from office and send the country in a new direction.
According to a Reuters report on Thursday, the consistent failure of the Berlusconi government to push through financial reforms strong enough to satisfy world markets has resulted in continually escalating costs for Italy’s debt. Eurozone and G20 members alike are seeking substantial actions from Italy lest fears of contagion threaten Europe’s economy; fears that debt woes may spread from Greece to Italy are rampant.
Yet, Berlusconi has failed to enact any substantial reforms, amid growing calls for his resignation. The latest failure took place late Wednesday, with his supporters accusing Economy Minister Giulio Tremonti of blocking the measure’s approval.