ROME, Sept 17 Continuous threats to bring down
Italian Prime Minister Enrico Letta's fragile coalition
government are holding back investments, European Commissioner
for Economic and Monetary Affairs Olli Rehn said on Tuesday.
"Particulary in Italy, where the economy is weak, political
uncertainty is a brake on investments," Rehn said in testimony
to Italy's parliament.
Centre-right leader Silvio Berlusconi and his allies have
repeatedly threatened to withdraw from the right-left government
if Letta's Democratic Party votes to expel Berlusconi from
parliament after a tax fraud conviction last month.
A parliamentary vote over Berlusconi is scheduled for late
Rehn also said Italy's scrapping of an unpopular housing tax
at the end of last month was cause for concern for the country's
management of its public accounts, and that Italy needed a long
period of structural reforms to improve its growth potential.