Berlusconi's top ally tells him to quit

ROME?? Silvio Berlusconi's top ally on Tuesday called on him to "step aside" as uncertainty rocked the markets ahead of a vote in parliament that is likely to ratchet up the pressure on the Italian prime minister.

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Italian news reports quoted Umberto Bossi from the Northern League as telling reporters that it's time for Berlusconi to resign and be replaced by another party leader from their coalition.? Berlusconi has been resisting calls to resign for weeks.

Bossi has in the past expressed doubts on Berlusconi's ability to complete the current mandate. The Northern League as a whole has proven at times to be a difficult ally, exerting a strong independent streak and challenging Berlusconi on key policies.

The calls for Berlusconi to quit came as the country's borrowing rates spiked to their highest level since the euro was established in 1999.

The markets have turned their attention this week from the political crisis in Greece ? where the two main parties were locked in talks Tuesday to forge a national unity government ? to Rome.

If Rome burns, US will feel the heat

Berlusconi's government is under intense pressure to enact quick reforms to shore up Italy's defenses against Europe's raging debt crisis.

However, a weak coalition and doubts over Berlusconi's ability to push through austerity and reforms have heightened the unease in financial markets that Italy could need financial aid.

What happens in Italy is a particular worry as it's the eurozone's third-largest economy.

At around euro1.9 trillion ($2.6 trillion), Italy's debts are considered by many in the markets as being too big for Europe to bail out, making the country a bigger risk for investors and pushing up interest rates.

Higher rates would make it more difficult for Italy to rollover its debts and would mean they consume more and more of national income.

The parliament vote later looks like it's on a knife-edge, with Berlusconi's coalition showing signs of fracture.

Italian news agency ANSA reported that Finance Minister Giulio Tremonti hurriedly departed from a meeting of eurozone finance ministers in Brussels to return to Rome.

The Chamber of Deputies vote, on a routine measure, is not a confidence vote ? whose loss would require Berlusconi to resign. But a loss would certainly send a political message that Berlusconi is in even deeper trouble.

It may not be sex that dooms Berlusconi

In less tense times, the vote would have meant routine approval of the 2010 state accounts, but instead it has become a crucial test of Berlusconi's survival as head of his 3? year-old center-right government.

Last month, the vote of the same measure failed by one vote. Chamber whips were meeting a few hours before the vote to map out a strategy for the vote, which is likely to take place Tuesday afternoon.

Story: Berlusconi denies speculation he is quitting

Opposition forces were considering boycotting the vote so the numbers would more clearly show just how many deputies still support the government.

If Berlusconi's forces number less than 316 deputies ? or one more than half the number of the 630-member chamber, it would be plain that the media mogul no longer can count on a majority in the lower house of Parliament.

The government could still win the vote, by commanding more than half of those showing up to vote, but a dismal showing could show Berlusconi is too weak politically to continue to govern.

If he gets through Tuesday's hurdle, Berlusconi has indicated he would put a vote next week on the anti-crisis measures to a confidence vote. If it loses that vote, Berlusconi would have to resign.

Antonio Di Pietro, a leader of a small center-left opposition party, told Sky TG24 TV that Berlusconi's "political adventure has been over for a while now."

However, he doubted that Berlusconi would resign, even if faring poorly in Tuesday's vote.

? 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Source: http://www.msnbc.msn.com/id/45203707/ns/world_news-europe/

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