Berlusconi threatens to quit in tax row

Italian Premier Silvio Berlusconi indicated today he might resign if his coalition partners fail to back him in parliament on income tax cuts.

Billionaire Berlusconi wants to soon push through billions of pounds worth of cuts, but he has so far failed to win united backing from within his conservative coalition. Allies have been in disagreement over how to achieve the tax breaks.

Asked what consequences there would be in case the tax cuts were not passed, Berlusconi said, “As far as Forza Italia is concerned, there would certainly be a call for new elections.”

Forza Italia is Berlusconi’s party and the largest one in the ruling coalition.

If Berlusconi were to hand in his resignation, it would be up to the Italian president to decide whether to accept it and call new elections or ask him or some other political leader to try to form a fresh coalition.

The premier was elected in 2001 on a platform that included promises for tax cuts. The next political elections are scheduled for 2006.

Berlusconi is at the helm of post-war Italy’s longest-serving government.