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Italy's Berlusconi wins vote on stimulus | Italy's Berlusconi wins vote on stimulus |
(about 2 hours later) | |
Italian Prime Minister Silvio Berlusconi has easily won a parliamentary vote widely seen as a test of the stability of his coalition. | Italian Prime Minister Silvio Berlusconi has easily won a parliamentary vote widely seen as a test of the stability of his coalition. |
Measures to stimulate economic growth were backed by a margin of 24 votes, suggesting the coalition can win a formal confidence vote on Wednesday. | Measures to stimulate economic growth were backed by a margin of 24 votes, suggesting the coalition can win a formal confidence vote on Wednesday. |
Its popularity has been declining amid weak economic recovery and scandals linked to Mr Berlusconi's private life. | Its popularity has been declining amid weak economic recovery and scandals linked to Mr Berlusconi's private life. |
It suffered setbacks in recent local elections and a popular referendum. | It suffered setbacks in recent local elections and a popular referendum. |
However, on Tuesday, the government won a motion of confidence in its economic stimulus measures in the Chamber of Deputies, Italy's lower house, by 317 votes to 293, with two abstentions. | |
Mr Berlusconi was due to appear later before the Senate, Italy's upper house, to outline his government's programme for the remaining two years of its term. | |
The programme is said to include concessions to the Northern League, the key partner for Mr Berlusconi's Freedom Party in the coalition. | |
The prime minister is also set to address the Chamber of Deputies on Wednesday before, as expected, it votes on a second motion, this time on confidence in the ability of the coalition to function. | |
Debt challenge | Debt challenge |
"These are the numbers of an absolute majority," said Angelino Alfano, justice minister and newly appointed secretary of the Freedom Party. | "These are the numbers of an absolute majority," said Angelino Alfano, justice minister and newly appointed secretary of the Freedom Party. |
"We are satisfied with the umpteenth indication of our consistency that shows our strength." | "We are satisfied with the umpteenth indication of our consistency that shows our strength." |
Asked if Mr Berlusconi would see out the end of his term in 2013, Northern League leader Umberto Bossi said: "If he does the right things, yes." | Asked if Mr Berlusconi would see out the end of his term in 2013, Northern League leader Umberto Bossi said: "If he does the right things, yes." |
The party is pushing for tax cuts, and for an end to Italy's involvement in Libya, on grounds of cost. | The party is pushing for tax cuts, and for an end to Italy's involvement in Libya, on grounds of cost. |
Finance Minister Giulio Tremonti has been resisting tax cuts, saying the state cannot afford to lose revenue. | Finance Minister Giulio Tremonti has been resisting tax cuts, saying the state cannot afford to lose revenue. |
Analysts warn that Italy could pay a heavy price for failing to push through reforms aimed at cutting the country's huge public debt. | Analysts warn that Italy could pay a heavy price for failing to push through reforms aimed at cutting the country's huge public debt. |
"The window of opportunity for the government to set the pace of the policy agenda is closing," Barclays Capital analysts said in a note, quoted by Reuters news agency. | "The window of opportunity for the government to set the pace of the policy agenda is closing," Barclays Capital analysts said in a note, quoted by Reuters news agency. |
"Markets are likely to demand higher spreads unless Italy switches gears soon." | "Markets are likely to demand higher spreads unless Italy switches gears soon." |
The analysts said they did not expect the Northern League to trigger a political crisis in the short term but it was a "possibility which cannot be entirely ruled out". | The analysts said they did not expect the Northern League to trigger a political crisis in the short term but it was a "possibility which cannot be entirely ruled out". |
Amid a series of corruption cases and an under-age sex scandal, Mr Berlusconi has seen his poll ratings fall, with a recent survey by PR suggesting his support among voters now stands at a record low of 29%. | Amid a series of corruption cases and an under-age sex scandal, Mr Berlusconi has seen his poll ratings fall, with a recent survey by PR suggesting his support among voters now stands at a record low of 29%. |
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