Italians Vote for New Government as Economy Stagnates (Update2)

[Joanne98]

Source: Bloomberg

By Steve Scherer

April 13 (Bloomberg) -- Italians began voting today to choose a new government with polls suggesting Silvio Berlusconi may be elected for a third time as prime minister to manage a $2.4 trillion economy on the brink of recession.

Berlusconi, 71, and Democratic Party leader Walter Veltroni, 52, are competing for the premiership just two years after the previous vote. Elections to choose Italy's 62nd government since World War II were called three years early after Prime Minister Romano Prodi's government collapsed in January.

``The situation isn't good,'' said Salvatore Zecchini, a professor of economic policy at Rome's Tor Vergata University. ``Whoever wins will have to do something for the economy, but the measures will be modest and they won't be able to revive growth.''

The International Monetary Fund forecast April 9 said the Italian economy, Europe's fourth biggest, would expand just 0.3 percent, the slowest of the more than two dozen ``advanced economies'' included in its World Economic Outlook report. Italy is Europe's most-indebted country, and ranks last in labor productivity among the 30-member Organization for Economic Cooperation and Development


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a5S39y4bXNtw&refer=home

---

What the hell is the matter with them?

[nichomachus]

1. That's incredible

The entire Italian economy is only about two thirds of the amount the Bush Crime Family has stolen from taxpayers for the Iraq fiasco.

[AndyTiedye]

2. Berlusconi AGAIN?

How can this be? You'd think he'd have to own all the TV and radio stations to get them to say anything nice about him.

Oh, wait. Nevermind.

[struggle4progress]

3. Fears of a deadlock as Italy votes

April 14, 2008
Richard Owen, Rome

Silvio Berlusconi, the media magnate and leader of the centre-right People of Liberty, is the favourite to win a third term of office. It is believed, however, that Walter Veltroni, leader of the centre-left Democratic Party, has closed the gap to a few percentage points in the past two weeks, as an estimated one third of undecided voters make up their minds ...

Even if Mr Berlusconi wins a comfortable majority in the Lower House, there may be stalemate in the Senate, which is elected on a regional basis under the complex Italian electoral system. The electoral law, based on proportional representation, was passed by Mr Berlusconi towards the end of his last period in office, when an election win by Romano Prodi and the centre left was forecast.

Mr Berlusconi’s aim was to cripple the Prodi Government — which collapsed in January after 20 months — by ensuring that it had too small a majority to govern. This has boomeranged against him as he faces the prospect of a slim majority in the Senate, which approves all laws.

Both Left and Right are reported to be backing candidates for the post of caretaker prime minister in the event of a hung Parliament, with the Right favouring Gianni Letta, the éminence grise of the previous centre-right Government, as Mr Berlusconi’s chef de cabinet ...

http://www.timesonline.co.uk/tol/news/world/europe/article3739603.ece