Italy 'paralysed' after economy minister quits

Italy is today said to be “paralysed” after the economy minister resigned amid a standoff with the Bank of Italy chief.

Domenico Siniscalco resigned an unsuccessful attempt to oust central bank governor Antonio Fazio, who has been accused of discriminating against a Dutch bank in a takeover battle.

Siniscalco’s predecessor, Giulio Tremonti, who himself had been forced to resign the post a little over a year ago, has now been appointed to replace Siniscalco.

Siniscalco’s resignation came days before the Cabinet must approve its 2006 budget, and just a few months before general elections.

“The country is paralysed, and this worries us very much,” said the head of Italy’s powerful industrialists’ association, Luca Cordero di Montezemolo.