ITALY: Media tycoon and Italian prime minister Silvio Berlusconi resigned last night, thus initiating a formal "government crisis" that is almost certain to conclude with his reappointment at the head of a reshuffled cabinet.
Mr Berlusconi handed in his resignation to President Carlo Azeglio Ciampi after announcing his intention to the Senate. His resignation was the outcome of three weeks of bickering and division with his centre-right coalition in the wake of a disastrous showing at regional elections on April 3rd and 4th, in which opposition centre-left forces won 11 out of 13 regional presidencies.
That defeat was largely determined by Italy's economic crisis, in which inflation far outstrips growth, currently estimated at nearly 1 per cent. Furthermore, many voters were probably alarmed by a series of Federalist reforms introduced last month and heavily promoted by another government partner, the Northern League.
In the aftermath of that heavy defeat, one government ally, the Union of Christian Democrats, withdrew its ministers from cabinet, while this week another ally, Alleanza Nazionale, threatened to do likewise.
Throughout the crisis, Mr Berlusconi has argued that, although willing to resign and then form a new government in line with constitutional requirements, he has no intention of asking Mr Ciampi to dissolve parliament and call an early general election.
Mr Ciampi will now hold two days of formal consultations with all political parties, both government and opposition, before calling on Mr Berlusconi to form a new government.
Mr Berlusconi told the Senate he was confident he would be able to form a new centre-right government with a programme that will focus on "increasing families' spending power, support industry and revitalise development in the south".
Mr Berlusconi's government, in office since June 2001, was the longest serving of the post-war era, having clocked up 1,410 days.