Italian Prime Minister Enrico Letta won a confidence vote in Parliament yesterday after Silvio Berlusconi, facing revolt in his own party, backtracked on threats to bring down the government.

As dozens of centre-right senators prepared to defy their media magnate leader and salvage the left-right coalition led by Letta, Berlusconi staged an abrupt U-turn and said he too would back the centre-left Prime Minister, just days after he sparked the crisis by pulling his ministers out of Letta’s Cabinet.

Centre-right in disarray after shock Berlusconi turnaround

After a sometimes fiery debate in the upper house, in which he faced repeated accusations of sowing chaos in a bid to stave off his imminent expulsion from Parliament following a tax fraud conviction, Berlusconi said: “We have decided, not without some internal strife, to support the government.”

Financial markets reacted positively, but the resolution of this crisis, seven months after an inconclusive election, leaves big question marks over Letta’s ability to address deep problems in Italy’s economy which are troubling its partners in the euro. Berlusconi’s belated declaration of support for him brought a smile of astonishment from the Prime Minister, who by then seemed sure of victory with the support of centre-right rebels.

Berlusconi masked his face with his hands after speaking. In what may be one of his last acts in the Senate before the procedure for his removal begins tomorrow, the 77-year-old billionaire then cast his vote among 235 for Letta to continue in office. Later, as he drove away, he was heckled by onlookers.

Letta, backed by his own Democratic Party (PD) and by Berlusconi and his People of Freedom (PDL), had opposition only from other parties, who mustered 70 votes against him.

The Prime Minister, who took office in April after an election in February that gave no one a clear majority, said he would press on with a programme of fiscal measures to keep Italy’s badly strained public finances under control and reforms to confront the worst recession in 60 years.

He also pledged to reform the widely criticised electoral law which gives the two houses of Parliament equal powers and makes it difficult for any party to win a functioning majority.

However, the surprising nature of his victory leaves a series of unanswered questions about both the stability of his government and the future of Italy’s centre-right political movement, which came close to implosion.

Having begun as a vote of confidence in Letta, the day turned into a test for Berlusconi, whose previously unchallenged grip on the conservative side of the political spectrum faced its gravest threat since he took up politics two decades ago.

His declaration for Letta capped a day that veered between high drama and what one centrist politician called farce, as an unprecedented party rebellion persuaded the three-time premier that there was no point in continuing resistance.

Having covered his face with his hands after his speech, when he later stepped into a car outside the Senate to be driven away, a crowd of onlookers heckled the centre-right leader.

Letta, who had appeared on course for victory with PDL help even before the startling turn of events in the chamber, reacted with visible surprise, laughing slightly and shaking his head in disbelief as Berlusconi made his announcement.

A second confidence vote was held in the lower house last night but Letta’s centre-left majority there ensured him an easy victory.

However, uncertainty remains over whether the government will be capable of the kind of deep reforms needed.

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