[Excerpt: The resignation, which may come later today, will end Italy's
59th government since November of 1945, the longest-serving in the
history of the post-World War II republic. The Union of Christian
Democrats party, the third-biggest in the four-way coalition, pushed
Berlusconi to take the step by withdrawing its ministers from the
Cabinet April 15.]

http://www.bloomberg.com/apps/news?pid=10000087&sid=az2JIMk2rgos&refer=top_world_news

Last Updated: April 18, 2005 10:35 EDT
Berlusconi to Resign, Form New Government, Buttiglione Says

April 18 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi plans
to resign to form a new government for the final year of the
parliamentary term, bowing to an ally's demands for change after losing
11 out of 13 regional elections last week, a lawmaker in his coalition
said.

``There will be a second Berlusconi government that adheres to the
policies indicated by our party,'' Rocco Buttiglione, a member of the
Union of Christian Democrats party who resigned as European Union
Affairs Minister on April 15, said today in Rome. Buttiglione's
comments, first reported by Ansa news agency, were confirmed by his
spokesman.

Support for Berlusconi, 68, has declined as the economy struggled, with
growth last year slower than any of the dozen nations sharing the euro
except for Portugal. Before national elections scheduled for 2006,
allies including the Christian Democrats are opposing Berlusconi's plan
to cut income taxes and boost spending on public works to help growth,
instead demanding business-tax reductions and aid to Italy's depressed
south.

The resignation, which may come later today, will end Italy's 59th
government since November of 1945, the longest-serving in the history of
the post-World War II republic. The Union of Christian Democrats party,
the third-biggest in the four-way coalition, pushed Berlusconi to take
the step by withdrawing its ministers from the Cabinet April 15.

The Christian Democrats leader Marco Follini asked the premier to resign
and form a new government to revive support. Berlusconi refused as late
as yesterday.

Follini's goal is to set his party apart from Berlsuconi for future
elections, said James Walston, head of international relations at the
American University in Rome.

Berlusconi's coalition won 8 percentage points less support than the
opposition led by former European Commission President Romano Prodi in
the regional elections. Berlusconi's Forza Italia party dropped more
than 11 percentage points from 29 percent of total votes in the 2001
national elections.

``Follini is trying to prepare for Berlusconi's departure,'' Walston
said. ``When Berlusconi goes, he'll leave 20 to 30 percent of the
electorate up for grabs.''

To contact the reporter on this story:
Steve Scherer in Rome at  [EMAIL PROTECTED]

To contact the editor responsible for this story:
Catherine Hickley at  [EMAIL PROTECTED]
enditem


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