Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Sponsored Links
Berlusconi says will run for Italian leadership again
Italy's former Prime Minister Silvio Berlusconi gestures as he speaks during a news conference at Villa Gernetto in Gerno near Milan October 27, 2012.
Credit: Reuters/Alessandro Garofalo
ROME |
ROME (Reuters) - Former Italian Prime Minister Silvio Berlusconi said on Saturday he would run to become the country's leader for a fifth time, confirming his return to politics after months of indecision.
"I'm going to race to win," Berlusconi told reporters at the practice field for AC Milan, the soccer club he controls.
"And again I'm doing it out of a sense of responsibility."
The 76-year-old media tycoon resigned in 2011 as prime minister as Italy teetered on the edge of a Greek-style debt crisis and he was dogged by a sex-scandal which included allegations he was involved with an underage prostitute.
The announcement he would run in his sixth national election came just two days after his People of Liberty (PDL) party withdrew support for Mario Monti's government, bringing the country close to a snap election a few months short of the natural end of the legislature.
On Saturday, Berlusconi said PDL would pass legislation proposed by Monti's government, including next year's budget package, and that March 10 was an acceptable date for the parliamentary election, confirming the collapse of Monti's government was not imminent.
Berlusconi has repeatedly changed his mind in the last few months on whether he will stand in the election, but he dropped a strong hint on Wednesday he was about to return to the spotlight.
President Giorgio Napolitano asked the former European commissioner Monti to form a government of technocrats after Berlusconi stepped down, with the support of a right-left coalition that includes the PDL.
Monti imposed austerity measures to bring borrowing costs under control. But the higher taxes have weighed on consumer spending and deepened a recession that began in the second half of last year.
Though the euro zone's third-biggest economy is still struggling, Monti has calmed the financial markets and the spread between Italy and German benchmark bonds this week fell to nearly half the level it was when he took over.
Monti, who is a life-appointed Senator, has said he will not stand in next year's vote, but is willing to step in afterward if the result is not clear.
(With additional reporting by Elvira Pollina in Milan and Giselda Vagnoni in Rome; Editing by Sophie Hares)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints
What is really interesting about Berlusconi’s candidacy besides the myriad scandals swirling around him is that he has advocated a return to the lira on several occasions since being booted from office in October of 2011. If Italy gets becomes a victim of the bond vigilantes, we have an idea about what Silvio will do about it.
There won’t be a panic on Monday in the Italian bond market. Investors will take the news of his candidacy in stride, because Silvio has little chance of winning. His party is currently in 3rd place polling behind a comedian Beppe Grillo’s protest party.
Outgoing Prime Minister Monti will not run for the position, but he said that he will serve as head of another technocratic government if asked. This article gives Mario Monti credit for Italy’s improving performance on the bond market.
Before we go giving the former Goldman apparatchik any medals, let’s remember that the ECB began providing massive amounts of liquidity first with two rounds of LTRO within weeks after he took office and then in the summer with the promise of OMT. Italian bonds have outperformed those of Spain, but then again Spain is in the midst of a depression.
dareconomics.wordpress.com
Follow Reuters