Tuesday, November 8, 2011

Italy's Berlusconi to resign after economic changes OK

This is not tax evasion, bribery, money, even with a 17-year-old girl brought Italian Prime Minister Silvio Berlusconi of pay. On Tuesday, the rapid growth of the debt crisis in Europe claimed that Berlusconi, Italy in the past 17 years, resulting in 11 of its latest victims. He vowed to shepherd through Congress the country's economic austerity program, and create at least some of Europe's fourth largest economy in the short-term relief after the resignation.
If Berlusconi stepped down, it will mark the fourth year in European countries, the government cut the expensive rescue and emergency austerity measures.
This is a surprising turn seemingly indestructible 75-year-old Berlusconi's troubles, including historically low approval levels, an important political ally of treachery and court, court cases, continue to dog the case of Italian leaders .
Colorful gaffe prone leader, who won notoriety around the world, such as President Obama and his young female dalliances described as "handsome, young, but also sun tanning" and bragging remarks shake people around the world, there when their heads.
Even those who say they enjoy the support of Berlusconi and his antics, that this is his time to go.
Irene Viterbese, 30 days, in Rome's beauty salon worker, said: "People get him, this is not fair," but I also think that in Italy the situation is getting worse, he seems unable to do his old, he has his own problems. Anything. Maybe he should go to the national interest. "
In Italy, a dramatic development, Berlusconi's allies, to achieve the budget measures in the parliamentary majority have already seen Berlusconi vote. Berlusconi mustered 308 votes, 630-member Chamber of Commerce.
Later, Berlusconi announced that he will resign after the approval of the budget measures, which include spending cuts by the EU finance ministers and demands reform.
Dramatic news from the Italian, Greek Prime Minister Papandreou resigned at the same time to prepare the official and the party's leadership to finalize an agreement, the government installed last month agreed to implement the EU's rescue package, will be able to.
Earlier this year, Ireland and Portugal under the weight of debt concerns to see their government collapse.
In Italy, political uncertainty, the government borrow money to promote the highest level since the euro launched nearly ten years ago cost. Parliament before the vote to reach up to 6.74% of the benchmark 10-year bond yields sharply close to the 7% level led to Greece and Ireland and Portugal the government to collapse.
IHS Global Insight's head of sovereign risk, Randolph, "Young said:" We must be careful with the similarities between Ireland and Portugal, as the Roman to the crisis a stronger financial position than these two countries are . "The Italian government spending exceeds tax revenue collected, give it a strong positive cash flow."
Even so, the rise in government bond yields raise the cost to borrow money to pay down the massive debt the country's prospects - it is worth $ 2.6 trillion, or the country's gross national product 120% - more difficult .
Italy's economy than Greece, Ireland and Portugal with nearly three times greater. It is not possible, the European Union will be able to raise sufficient funds to bail the country, if it must pay its debt arrears.
The failure of any one in Italy the euro zone as a whole terrible consequences.
Luca Silipo, a former Italian central bank officials, and an economist with Natixis SA ", said:" If Greece is in Italy to obtain the same state, the euro currency will no longer be possible. "If the Italian bankruptcy, then France will next year.
"You obviously do not want to have the same problem in Italy and Greece," he said.
Analysts said that despite its political development, in Italy in the same direction near Greece. Although the Italian market is expected to Wednesday, this may be a short-term trend.
"If Berlusconi goes, the market may respond positively ... (but) the basic economic problems still exist and there is no easy solution," Havel said, Noriega, and investment bankers Hildebrandt and Ferrar senior economist. "I do not know if the Italian people has been its head around the fact that it is in Italy to get worse before better, and there is a lot of hard work ahead."
ING Financial Group economist in Brussels, Carsten Brzeski, agreed.
"Italy is growing, the sick man of Europe", he said. "The country has been very, very weak growth. It is not like in Greece or in other neighboring countries, the economic recession we all know, Italy is too big to fail, they can not be rescued or released on bail in other European countries, they need their own , or else the euro zone big problem. "
In the last Berlusconism delivery: In 2006, he quipped: "My Jesus I am a political victim of the patient ... I sacrifice for everyone."


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