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Berlusconi's PDL party pullout risks Italy's reforms

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By The Associated Press
Thursday, Dec. 6, 2012, 9:24 p.m.
 

ROME — Concerns over the stability of the Italian government grew on Thursday as Silvio Berlusconi's party withdrew its support from Premier Mario Monti, threatening to bring a premature end to the administration's ambitious reforms program.

Expressing disappointment over Italy's stagnant economy, Berlusconi's center-right PDL party abstained from two confidence votes: one in the Senate and one in the lower Chamber of Deputies.

Although the government of unelected technocrats won both votes by a wide margin, investors were concerned that there could be a new period of political uncertainty because Monti had lost the support of Berlusconi's party, the largest bloc in Parliament.

Monti declined to weigh in on the political fray, telling a news conference that his government was ‘‘going ahead with its work.”

Monti was appointed to replace Berlusconi, who resigned last year when financial markets lost confidence in his ability to steer Italy through its worsening sovereign debt crisis.

Many credit the current prime minister with bringing back some market confidence in the country, pulling it back from the edge of financial disaster on which it was teetering last year.

‘‘There is the whiff of crisis,” political scientist Roberto D'Alimonte of Rome's LUISS University said on Sky TV 24. ‘‘We will see in the next hours.”

President Giorgio Napolitano in public comments acknowledged that the political climate was tensing, as campaigns gear up to elect a new government early next year when Monti's mandate expires. Napolitano could dissolve Parliament a few months earlier if he feels that the government no longer has wide support in Parliament. Even as financial markets dropped on news of the abstentions, Napolitano warned against a ‘‘precipitous” conclusion of Parliament as he takes the pulse of Italy's top political parties.

Berlusconi's top political aide and designated political heir, Angelino Alfano, insisted that the media mogul's party had no intention of sparking a crisis that could bring down the government.

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