A Crisis is Born in Italy

Well as almost everyone must surely know by now, Romano Prodi’s government resigned earlier in the week. The present situation is still far from clear, with President Giorgio Napolitano holding urgent consultations with the various interested parties even as I write. Since my interest in Italy is largely an economic one (see accompanying post to follow this) and since I do not consider myself to be any sort of expert on the Italian political process, I asked Manuel Alvarez Rivera (who runs the Election Resources on the Internet site) and who is a political scientist with detailed knowledge of Italian politics for an opinion. Below the fold you can find what he sent me.

At the same time anyone inside or outside of Italy with a different take or perspective please feel free to add something in the comments section.
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Hirsi Ali’s shadow brings down Dutch cabinet

The Dutch government has handed in its resignation after coalition partner D66 withdrew its support. Lousewies van der Laan, chairwoman of D66, had asked for the resignation of VVD minister Rita Verdonk because of her handling of the Hirsi Ali naturalisation case. The initial vote of censure* by Femke Halsema (GroenLinks-GreenLeft) that inspired Van der Laan’s resignation plea received no majority in the Dutch Lower Chamber and Rita Verdonk refused to quit on her own. D66 cabinet members Laurens Jan Brinkhorst, Alexander Pechtold and Medy van der Laan consequently resigned and, by doing so, pulled the plug on the whole cabinet.
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The Italian Government Has A New Crisis

Germany isn’t the only EU country where serious ongoing economic problems are leading to political gridlock. Italy’s situation is no better, and arguably worse. This ‘worse’ aspect was pushed into the headlines yesterday by the resignation of Economy Minister Domenico Siniscalco. This is sending shock waves throughout the entire Italian political system. It still isn’t clear at the time of writing whether the Berlusconi government can survive, especially given the gravity of the underlying problem which is the need to make severe budget cuts when Italy is in a prolonged recession and elections loom sometime next spring.

Essentially Siniscalco quit because of continuing government infighting over the 2006 budget and over the administration�s failure to force the resignation of Bank of Italy Governor Antonio Fazio following the scandal produced by accusations that he showed bias against Dutch bank ABN AMRO during a takeover battle for the Italian Banca Antonveneta SpA.
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