The FINANCIAL — Italy's president raced to appoint an emergency government yesterday to face a crisis endangering the whole Eurozone and replace Silvio Berlusconi, who resigned as prime minister to the humiliating jeers of thousands of protesters.
Just a few hours after central Rome echoed with street parties celebrating Berlusconi's departure, President Giorgio Napolitano began a rapid round of meetings with political parties at his hilltop palace.
The consultations, much faster than is normal, were due to wind up at about 5pm GMT, when Napolitano was expected to ask former European Commissioner Mario Monti to form a government largely of technocrats in time for the opening of markets today.
Monti will push through reforms agreed by Berlusconi with Eurozone leaders to cut Italy's massive debt and revive a chronically stagnant economy.Italy's political turmoil, centred around the flamboyant and scandal-plagued figure of Berlusconi, has brought the Eurozone's third largest economy to the brink of disaster and all eyes will be on market reaction today.
"See what a beautiful day it is?" Monti said to reporters as he left his hotel on a crisp, clear day yesterday to go to church and then to his Senate office to continue work on forming the government.Sunday newspapers said Berlusconi's departure marked the end of an era and spoke of the irony of how a media magnate famed for his skills in communicating with the public was seen off by jeering crowds.
Turin's La Stampa called it "a sad exit from the stage", noting how he was forced to leave the presidential palace secretly via a side exit on Saturday night after handing in his resignation because a crowd shouting insults including "clown, clown" made it dangerous for him to exit by the front gate.
Cheers erupted when they heard he had resigned. People sang and danced and an impromptu orchestra near the palace played the Hallelujah chorus from Handel's Messiah. There were also celebrations in Milan and the central city of Bologna. Some protesters threw coins at Berlusconi's car in a gesture reminiscent of the departure into exile of disgraced Socialist Prime Minister Bettino Craxi in 1993, often seen as his political mentor.
Monti has received the backing of the main opposition groups and the conditional acceptance of Berlusconi's centre-right PDL after objections were dropped by several factions.
But analysts believe he will face an uphill battle with strong public and political opposition to some of the tough austerity measures he will need to implement to satisfy markets and Eurozone leaders.
Discussion about this post