ITALY: A vote in the senate on the 2013 budget law, which was expected to be approved by the end of the week, is hit by further delays, which could push back Prime Minister Mario Monti's resignation

Record ID: 327874

  • Title: ITALY: A vote in the senate on the 2013 budget law, which was expected to be approved by the end of the week, is hit by further delays, which could push back Prime Minister Mario Monti's resignation
  • Date: 19th December 2012
  • Summary: ROME, ITALY (DECEMBER 19, 2012) (REUTERS) ROME'S PIAZZA NAVONA SQUARE VARIOUS OF FOUNTAIN BY STALLS VARIOUS OF PEOPLE AND POLICE IN SQUARE EXTERIOR OF SENATE
  • Embargoed: 3rd January 2013 12:00
  • Keywords:
  • Location: Italy
  • Country: Italy
  • Topics: Economic News,Politics
  • Reuters ID: LVA163QSU8WUNDLMFIDKZPI29XHX
  • Story Text: Italy's upper house of parliament delayed ratifying the 2013 budget law on Wednesday (December 19), the first stage in the budget's approval process.
    The senate had been expected to begin a vote on the budget on Tuesday, but the session was postponed to Wednesday morning.
    However, on Wednesday morning, sessions were delayed twice, with the new session now set for 1300gmt.
    The leader of Silvio Berlusconi's People of Freedom (PDL) party in the lower house said on Tuesday that the party was in no rush over the new law.

    "I am very concerned because the PDL party is trying by all means to sink the ship because they have such big internal problems that they want to delay the elections. I think in the past 20 years it's been well documented that they are more interested in their own fate than that of the country. If they are ready to lead the country into an institutional void, it is yet another demonstration of their irresponsibility. I think we need to vote on this budget and hold the elections as soon as possible," Democratic Party senator, Claudio Micheloni said outside the senate.
    The vote on the law is expected to go through in the senate without problem, before passing into the lower house of parliament for final approval.
    Prime Minister Mario Monti has said he will resign once the law is approved.
    But with the wrangling over the budget law, Monti on Wednesday pushed back an end of the year news conference at which he had been expected to announce whether he planned to run in next year's election.
    Monti had been expected to announce his intentions at a news conference previously scheduled for Friday (December 21), when lawmakers had been expected to have completed approval of the 2013 budget, clearing the way for parliament to be dissolved.
    The delay adds to the deep uncertainty surrounding the election, currently expected in February, in which the unelected technocrat Monti has been under growing pressure to stand and continue his economic reform agenda.

    "To tell you the truth, I'd be sad for Monti if he were to run. I've supported him, even in initiatives that I did not like. What he has done was necessary for the country and his candidature would throw him in the arena, just like all the others and Italy would lose an impartial person who sets the standard high," said Micheloni.
    According to recent polling data, many in Italy are against Monti running for a second term.
    Approval ratings for the premier have hit almost their lowest level since Monti was appointed 13 months ago to lead a government charged with pulling Italy from the brink of a financial crisis.
    Monti is under international pressure to stand so he can continue a programme of reforms and austerity meant to defuse a debt crisis dangerous to the euro zone.
    But the tax hikes and cuts to spending imposed by the government have provoked widespread protests in Italy.

    "Monti, like every other Italian, has the right to become a candidate but he would need to campaign, putting his face out there and asking for votes. I don't think he has the courage to do it. I really can't see him going around, asking people to vote for him," said Northern League senator Roberto Castelli.
    Although a high number of voters appeared to be against Monti standing for election, leaders of centre-right politicians stepped up calls over the weekend for him to run for a second term at the head of a conservative coalition.

    "I think a contribution from Monti would be useful. In one year, leading the government, he's done much to help fix the country and this experience must continue," said senator Gianpiero D'Alia of the UDC party.
    Currently the centre-left Democratic Party has the biggest portion of electoral support with 31 percent of voters, a poll showed, followed by the populist 5-Star Movement at 19 percent and Silvio Berlusconi's centre-right People of Freedom party at 16.5 percent.

    "I wouldn't vote him. He's done something good as far as Italy's relationship with Europe is concerned but he has ruined Italian families. He has made us poor," said Rome resident Aldo Martini, when asked about Monti.
    Ten days ago, Monti pledged to resign immediately after the passage of the budget because Berlusconi's party had withdrawn its support. Monti's promised resignation, if it comes by the end of the year, will bring forward the natural end of the legislature by about two months.
    But while support is low for Monti, many Italians have expressed their opposition to Berlusconi's comeback plans.

    "Anyone would be better than Berlusconi," said Virginia Coletti.
    Monti's office said that he would not make any comment on his future plans until parliament had been dissolved, which is now likely to be delayed until at least next week.
    Though the timing may be pushed back, there appears to be no danger that the 2013 budget, which aims to lower payroll taxes and cut the deficit, will not pass by the end of the year, which is the deadline by law.
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