Berlusconi vows quick cabinet formation

Silvio Berlusconi’s resignation as prime minister amid mounting criticism over Italy’s sluggish economy and role in Iraq leaves the country’s president with a choice between calling early elections or designating a premier to assemble a new government.

As President Carlo Azeglio Ciampi begins formal political consultations today, it appeared almost certain he would tap Berlusconi to form a new government.

Berlusconi stepped down yesterday while vowing to quickly form a stronger, revamped cabinet to restore confidence in his leadership.

Resigning and then immediately shuffling the cabinet is an old trick of Italy’s complicated political system, and has been used by premiers to strengthen faltering coalitions.

Berlusconi was leading Italy’s longest-serving government since the Second World War and had resisted the move, sensing it would undermine his image as a new-style politician. Yesterday, he suggested he would have preferred to stay.

“One can’t always get what one wants,” he said, acknowledging the end of his ambition of heading Italy’s first post-war government to serve an entire five-year term.

But the resignation, which he submitted to the president, is expected to enable Berlusconi to form a more solid cabinet after weeks of infighting within his coalition, triggered by an embarrassing defeat in April 3 and 4 regional elections.

Berlusconi is staying on as caretaker, and the Apcom news agency quoted him as saying that he expected the crisis to be over by the end of the week. He reportedly said he would not change many ministers, but did not give details.

The resignation was welcomed by his allies, who had demanded it after the electoral defeat.

“His speech was excellent,” said Gianfranco Fini, who serves as deputy premier and foreign minister.

Berlusconi’s popularity has been sagging. In yesterday’s address to the Senate, Berlusconi appeared to appease some requests from his allies when he said the new platform would focus on aiding Italy’s underdeveloped South and financially pressed families.

The economy is high on the list of worries. Italy’s economy grew by 1.2% last year compared to an average 2% in the 12-nation euro zone, raising pressure on the government to contain its ballooning deficit under European Union rules.

The centre-left opposition has been pressing for early elections, emboldened by polls suggesting they could win. In tune with most Italians, the opposition was against Berlusconi’s decision to send 3,000 troops to Iraq after the ouster of Saddam Hussein.

Pressure to pull out the troops mounted after the March 4 killing in Baghdad of an Italian intelligence agent who was escorting a released hostage. The agent was shot by US troops who mistakenly fired on his vehicle.