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Italy in crisis as Berlusconi's party quits government

Scandal-hit billionaire withdraws support from shaky coalition

Italy’s fragile coalition government has been pushed into a full-fledged crisis after five ministers from former premier Silvio Berlusconi’s Liberty Party announced their resignations.

The move drew the fury of premier Enrico Letta, who accused Mr Berlusconi of a “crazy” gesture aimed at covering up his personal affairs.

The five-month-old government has teetered for weeks since the high court confirmed Mr Berlusconi’s tax fraud conviction.

Mr Berlusconi’s right-wing party is in a coalition of rival forces with Mr Letta’s centre-left Democratic Party and the resignations signal the end of that alliance.

The resignations must be submitted to President Giorgio Napolitano, who will decide whether there is any way to continue the government or if new elections must be held.

The resignations came after Mr Berlusconi urged his party’s ministers to step down if the government didn’t revoke an increase in Italy’s value-added tax.

But Mr Letta said that Mr Berlusconi was using the sales tax increase as an alibi “to justify the crazy and irresponsible gesture, all aimed only to cover up his personal affairs.”

“The Italian people will know to return to the sender such a big lie and attempt to distort reality.”

Tensions had already been swirling around a Senate committee vote next week on whether to disqualify Mr Berlusconi because of the tax fraud conviction.

Nearly all Berlusconi senators have vowed to quit if a Senate committee votes next week to strip him of his seat because of the conviction.

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