Berlusconi denies resignation as vote of confidence beckons

As Italy’s borrowing rates spike to a euro-era high today, Italian premier Silvio Berlusconi has denied considering he will resign to make way for a new government, Italian newspaper La Repubblica reports.

According to the left-leaning newspaper, critical voices of the Italian prime minister’s inability to drive through the necessary reforms for the debt-ridden country, have increased as Berluconi tomorrow faces yet another vote of no confidence.

There is growing concern that Berlusconi no longer commands enough loyalty among politicians to ensure the quick passage that European and international financial officials say Rome must achieve to avoid falling victim to a dramatic debt crisis like that bringing Greece to its knees.

Berlusconi has remained defiant, insisting he still commands enough support in parliament to enact urgently needed measures to save Italy from financial disaster.  “We maintain that there are no alternatives to our government until 2013,” when elections are due, Berlusconi said, addressing a political gathering by audio hook-up.

During an economic summit in France last week, Berlusconi asked the International Monetary Fund to monitor the country’s reform efforts, a humiliating step for such a large economy. 

If Berlusconi’s forces lose upcoming votes in parliament, the Italian president, who has repeatedly called on Berlusconi to take decisive steps immediately to rescue the nation, could intervene and rule that it is time for a new government. But only the loss of a confidence vote can force a government to resign.