Berlusconi Tells Political Allies to Prepare for Elections, Corriere Says

http://www.bloomberg.com/news/2010-08-05/berlusconi-tells-political-allies-to-prepare-for-elections-corriere-says.html

Prime Minister Silvio Berlusconi told close political allies yesterday that they should prepare for early elections because his government was becoming unmanageable, Corriere della Sera reported, citing closed-door comments by the premier.

Berlusconi yesterday won a key vote when the lower house of parliament rejected a no-confidence motion against Giacomo Caliendo, a Justice Ministry undersecretary, though the premier failed to muster an absolute majority after former members of his People of Liberty party abstained.

The vote was the first test of Berlusconi’s parliamentary majority since Gianfranco Fini, co-founder of Berlusconi’s party, abandoned the formation with more than 30 allies to form a new party after. The prime minister told allies that if Fini continues to threaten Berlusconi’s majority, there would be no alternative to seeking early elections, Corriere said. Italian President Giorgio Napolitano holds the power to call elections.

To contact the reporter on this story: Andrew Davis in Rome at abdavis@bloomberg.net