Berlusconi hangs on in tight confidence vote

Italian premier Silvio Berlusconi survived a confidence vote in parliament yesterday, but the narrow majority has raised fresh doubts over his ability to govern effectively when the country needs a steady hand during its current economic crisis.

Mr Berlusconi’s conservatives won in a 316-301 vote in the lower house. The vote came after parliament failed to approve part of the budget by one vote – with the finance minister missing the vote by 30 seconds.

Prime minister Berlusconi has been weakened by sex scandals, criticised for his handling of the economy and faced repeated calls for his resignation from rivals.

Three ratings agencies have downgraded Italy’s public debt, citing the country’s political gridlock and low growth prospects as key reasons. Yesterday’s vote appeared to do little to reassure markets.

“The best signal that Italy could have sent to the markets would have been to boot Mr Berlusconi out, but it has failed to do so,” said Sony Kapoor, managing director of Re-Define an Economic Think Tank. “With Mr Berlusconi still at the helm, there is nothing that Italy can do from within that will restore market confidence.”

The 75-year-old leader has hung onto power despite the scandals and four criminal trials in Milan. He has always maintained his innocence and blamed what he says are left-leaning prosecutors bent on ousting him. He branded yesterday’s vote an “ambush” by the opposition.