Monday 25 February 2013

Italy election: Early vote count points to impasse



Pier Luigi Bersani voting on 24/2/13Pier Luigi Bersani's centre-left bloc had been the frontrunner in pre-election opinion polls
Early results from Italy's election suggest the houses of parliament may split between left and right, causing new anxiety in the eurozone.
Projections suggest Pier Luigi Bersani's centre-left bloc has a narrow lead in the lower house while Silvio Berlusconi's centre-right is ahead in the powerful Senate.
A protest movement led by comedian Beppe Grillo surged into third place.
The election comes amid a deep recession and tough austerity measures.
It marks a return to full-blown democracy for Italians after the technocratic government of Mario Monti whose attempts to reduce spending caused widespread public resentment.
After early results in the Italian election, the country appears to be heading for political deadlock.
Whilst the centre-left under Pier Luigi Bersani seems to be heading for victory in the lower house, Silvio Berlusconi and his allies are performing strongly in the Senate. It may give him influence but he will not be returning to power.
To complicate matters further, the protest movement led by the comedian Beppe Grillo is showing huge gains.
Certainly Mr Bersani will try to form a government but the question is, whether such a coalition would command credibility. Already, politicians are talking of the need for a second election.
Milan's stock market soared nearly 4% when exit polls suggested a clear Bersani victory - butlost nearly all of its gains when projections began to show Mr Berlusconi winning a sizeable vote. Italy's 10-year borrowing cost fell but then rose again to close slightly higher at 4.49%.
It was market pressure, with a borrowing cost of well over 6%, that forced Mr Berlusconi to resign as prime minister in late 2011.
Correspondents say Italy's EU partners and the financial markets want to see a stable outcome to the election, with a commitment to reform and debt-reduction.
The BBC's Europe editor, Gavin Hewitt, says Brussels and Berlin would like to see Mr Bersani form a governing coalition with Mr Monti.
They fear that an uncertain outcome could lead to Greek-style paralysis in the eurozone's third largest economy, he says.
A leading figure in Mr Bersani's party has said a new election may need to be called in order to form a stable government.

Start Quote

Eleonora Antonelli
I feel that this is Italy's chance to finally get rid of Berlusconi”
Eleonora AntonelliBBC News Online reader in Rome
Early vote
With returns from 75% of districts processed, Mr Bersani's centre-left bloc had won 30.3% of the vote for the lower house (Chamber of Deputies) to 28.5% for Mr Berlusconi's bloc.
Mr Grillo's Five Star Movement had 25.5% and the centrist list led by Mario Monti 10.6%.
Mr Bersani was also projected initially to win a majority in the Senate, where seats are decided region by region. However, later projections suggested Mr Berlusconi's bloc was ahead in the key swing regions.
Control of both the lower and upper houses of parliament is needed in order to govern.
Mr Bersani has pledged to continue with Mr Monti's reforms but suggests current European policy needs to do more to promote growth and jobs.
The election was called two months ahead of schedule, after Mr Berlusconi's party withdrew its support for Mr Monti's government.
'Torn apart'
Speaking on Italian public TV, Mr Bersani's economics spokesman, Stefano Fassina, said: "The scenario from the projections we have seen so far suggests there will be no stable government and we would need to return to the polls."
"If there is one majority in the Chamber and another in the Senate, there is no government," he told reporters.
At the headquarters of Mr Bersani's Democratic Party in Rome, one of the candidates, Alessandra Moretti, told AFP news agency the results gave "the impression of a country torn apart".
Beppe Grillo leaves a polling station after casting his ballot in Saint Ilario near Genoa, 25 February Beppe Grillo cast his vote near Genoa
Accepting that Five Star had "succeeded where traditional politics has failed", she hinted at possible collaboration with Mr Grillo's party - "a relationship that could give us an agreement on concrete laws".
At the headquarters of Mr Monti's campaign, the mood was sombre but one candidate, Mario Giro, suggested the former prime minister could yet play a central role.
"If the current results are confirmed, we'll have two big coalitions that will have to work together," he told AFP. "Monti would be a pivot between the two. He'll be central."
Meanwhile, Mr Grillo's camp played down the prospect of co-operation with Mr Berlusconi.
"Dialogue with Berlusconi?" candidate Alessandro Di Battista told AP news agency at Five Star headquarters in Rome.
"It is very difficult to imagine that Berlusconi would propose useful ideas."

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