[QODLink]
Archive
Italian economy minister resigns
Premier Silvio Berlusconi's government suffered a serious blow as its respected economy minister resigned amid a standoff with the Bank of Italy chief, prompting the centre-left opposition to call for early elections.
Last Modified: 22 Sep 2005 19:18 GMT
Siniscalco (R) said he could not 'take it anymore'
Premier Silvio Berlusconi's government suffered a serious blow as its respected economy minister resigned amid a standoff with the Bank of Italy chief, prompting the centre-left opposition to call for early elections.

Domenico Siniscalco resigned on Wednesday night, according to the economy ministry. He had unsuccessfully tried to oust
central bank governor Antonio Fazio, who has been accused
of discriminating against a Dutch bank in a takeover battle.

Berlusconi said he had named Siniscalco's predecessor, Giulio Tremonti, who himself had been forced to resign the post a little over a year ago, to replace Siniscalco.

Unbearable

President Carlo Azeglio Ciampi later approved Siniscalco's resignation and Tremonti's nomination, Ciampi's office said.

Siniscalco's resignation came days before the Cabinet must approve its 2006 budget, and just a few months before general elections.

Berlusconi has been suffering
from a popularity crisis

"Really, I couldn't take it anymore," Siniscalco was quoted as saying by the Italian paper La Repubblica.

The resignation of a highly respected, politically independent economist like Siniscalco added to the problems of Berlusconi's government, whose popularity has been declining in recent months mainly because of the country's sluggish economy.

"The country is paralyzed, and this worries us very much," said the head of Italy's powerful industrialists' association, Luca Cordero di Montezemolo.

Elections

The centre-left opposition demanded that the whole government step down and call early elections. The vote is
now scheduled for mid-2006.

Romano Prodi, the center-left leader expected to challenge Berlusconi at the elections, said that "prolonging this agony would be grave for all of our families, companies and for the country's economy."

Fazio (R) is accused of
mishandling a takeover struggle

But Berlusconi, who is trailing behind the opposition in opinion polls, seemed determined to act swiftly, picking Tremonti a little more than a year after he resigned at the demand of a coalition ally in return for the survival of Berlusconi's government.

His resignation in July 2004 had been demanded by Deputy Premier Gianfranco Fini, whose right-wing National Alliance is Berlusconi's largest coalition partner.

Tremonti had also locked horns with Fazio over Tremonti's proposed reforms to the Bank of Italy, which would have reduced the governor's sweeping powers and cut short his life term.

Financial wrongdoing

In his strongest criticism yet of the governor, Berlusconi said late on Thursday that Fazio's position as governor "is inappropriate and incompatible with Italy's international credibility."

"The problem isn't Fazio, but those who are incapable of solving the problem"

Former Italian finance minister, Domenico Siniscalco

The recent accusations against Fazio center on his handling of a struggle between Banca Italiana Popolare Scarl and Dutch rival ABN Amro Holding NV for control of Banca Antonveneta SpA. Wiretapped conversations published in the Italian media suggested Fazio favored the Italian bank's bid. Fazio denies wrongdoing.

"The problem isn't Fazio, but those who are incapable of solving the problem," the daily La Repubblica quoted Siniscalco as saying. "For this I'm not embittered, I'm scandalized."

"This event has struck at the heart of the credibility of our financial system," Siniscalco said.

Budget

The Bank of Italy governor is appointed for life, and the government cannot force him out. Siniscalco has been among Fazio's fiercest critics, repeatedly calling for his resignation.

Fazio was flying to Washington global finance talks that begin Friday with a meeting of the finance ministers and central bank presidents of the world's seven richest countries.

According to La Repubblica and other reports, Siniscalco was also upset because the coalition failed to reach an agreement over much-needed spending cuts aimed at keeping Italy's 2006 budget deficit under control. The government has to present the budget within the next nine days.

"Today's resignation by Economy Minister Siniscalco indicates that the budget law will be shaped by ... Berlusconi's electoral needs more than by the those of the country," Lorenzo Codogno, an analyst with Bank of America, said in a statement.

Berlusconi said Italy will now be represented by Tremonti at an International Monetary Fund meeting in Washington.

Source:
Reuters
Topics in this article
People
Country
Organisation
Featured on Al Jazeera
UNHCR says hundreds of people trapped in Yaloke town risk death if they are not evacuated to safety urgently.
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Featured
Long-standing dispute over Christian use of the word 'Allah' raises concerns about a very un-Merry Christmas.
The threat posed by ISIL has prompted thousands of young Kurds to join the PKK.
Baja California - with its own grim history of disappeared people - finds a voice in the fight against violence.
Russian feminist rockers fight system holding 700,000 - the world's largest per capita prison population after the US.
Weeks of growing protests against Muslims continue in Dresden with 15,000 hitting the streets last Monday.