Berlusconi Calls It Quits after 17 years on Italy Helm

Upon hearing the news of Berlusconi's resignation, scores of Italians went on the streets and crowds celebrated outside the presidential palace, shouting "buffoon" and "game over." Photo by EPA/BGNES

Silvio Berlusconi has resigned as Prime Minister of Italy, after 17 years as leader of the country.

The news was reported by BBC late Saturday, informing that Italian President Giorgio Napolitano has accepted the resignation.

Berlusconi lost majority over the severe debt crisis shacking the eurozone. He vowed to leave since Tuesday, but not before Members of the Parliament approve the austerity measures package.

Upon hearing the news, scores of Italians went on the streets and crowds celebrated outside the presidential palace, shouting "buffoon" and "game over." Police had to control a large, hostile crowd which booed and hissed as Berlusconi's convoy went by. He was also forced to leave by a side exit to avoid the protesters and said he felt "embittered" by the reaction.

Berlusconi has been PM three times after he first took office in 1994 and has described himself as Italy's best head of government since the country was created nearly 150 years ago. He is, however, currently involved in several trials for fraud, corruption and having sex with an under-age girl.

Members of the lower house voted 380-26 with two abstentions on Saturday, a day after the Senate approved the measures that have now been signed into law.

The austerity package plans for a balanced budget by 2014 through EUR 59.8 B in savings from a mix of spending cuts and tax increases. The plan foresees an increase in Value Added Tax (VAT), from 20% to 21%; a freeze on public-sector salaries until 2014; upping gradually retirement age for women in the private sector from 60 in 2014 until it reaches 65 in 2026, the same age as for men; strong measures against tax evasion, including a limit of EUR 2 500 euros on cash transactions, and special tax on the energy sector.

Meanwhile, Napolitano's spokesman Donato Marra announced late Saturday that the president had invited the outgoing government to "remain in power in order to finish current business," nevertheless, consultations on forming on new government would begin on Sunday.

Napolitano is expected to formally ask former European Commissioner, Mario Monti to take on the PM post and form a government of technocrats.

Monti is a well-respected economist, and his appointment is anticipated and approved by experts, who say it would be beneficial for money markets in times of crisis. But there is significant opposition to him within the country, and a feeling that Italy's worries are just too big in order to be fixed by a simple cabinet change.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!