2011-11-08 10:08:34

Berlusconi facing parliamentary test


Italy’s Prime Minister Silvio Berlusconi faces a key vote on public finances Tuesday afternoon. Doubts about Italy's ability to service its debts have pushed its borrowing costs to record highs as the euro-zone crisis spreads. The yield on Italian 10 year bonds hit a fresh euro-era high on Monday amid ongoing political uncertainty – with Berlusconi being forced Monday afternoon to deny reports of his imminent resignation.
All this is happening as euro-zone finance ministers meet in Brussels to discuss the euro-zone debt crisis.
Speaking to MPs in London, British Prime Minister David Cameron said Germany should drop its opposition to the European Central Bank expanding its role to ease the debt problems surrounding countries like Italy.
Berlusconi's failure to adopt reforms swiftly to defuse the debt crisis has fuelled dissent within his party, though estimates vary widely over how many centre-right deputies will jump ship in the key vote in the lower house due to take place mid-afternoon Rome time.
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