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Bunga Bunga Era Is Over: Italian Parliament Approves Budget Reform, Paving Way For Be
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Bunga Bunga Era Is Over: Italian Parliament Approves Budget Reform, Paving Way For Be

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Bunga Bunga Era Is Over: Italian Parliament Approves Budget Reform, Paving Way For Be

The Italian Bunga Bunga era is now over. Last week, after losing the vote of confidence, Berlusconi said that he would resign the minute the parliament voted through the 2012 budget reform. As of minutes ago, this has just happened, after 380 parliamentarians effectively voted to kick Silvio out. As per Reuters: "The Italian parliament gave final approval to a package of economic reforms in a vote on Saturday which clears the way for the resignation of Prime Minister Silvio Berlusconi and the formation of an emergency government. Berlusconi, who failed to secure a majority in a crucial vote on Tuesday, promised to resign once parliament passed the law, demanded by European partners to restore market confidence in Italy's strained public finances. He is expected to hand in his resignation to President Giorgio Napolitano later on Saturday. Former European Commissioner Mario Monti is expected to be given the task of trying to form a new administration to face a widening financial crisis which has sent Italy's borrowing costs to unmanageable levels." Of course, if Monti is unable to get the required majority of support, the country will proceed with general elections, which will throw the BTP yields into yet another maelstrom. And even if Monti succeeds in forming a technocratic "consensus" government, the question still remains: just how will he succeed in implementing the required austerity where Silvio failed?



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