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Italian PM steps down

By Batuk Gathani

BRUSSELS, APRIL 19. The Italian Prime Minister, Mr. Massimo D'Alema, today resigned after being in power for 18 months. The media mogul, Mr. Silvio Berlusconi, is likely to come back to power in the polls to be held in April next.

Analysts point out that Mr. Berlusconi's aggressive tax cuts may endanger Italy's carefully nurtured financial and political stability, but would certainly win him many votes.

After the weekend defeat of his centre-left coalition in the regional elections, Mr. D'Alema was determined to make his ``irrevocable'' decision to resign.

Italian politicians of all hues are busy throwing names of potential new Prime Ministers. Mr. D'Alema addressed Parliament late on Wednesday afternoon and since then, had been preparing to submit his resignation to the President, Mr. Carlo Azeglio Ciampi.

Mr. Berlusconi and his centre-right allied parties are pressing for early general elections to cash in on their stunning electoral victory in Sunday's regional elections. The centre-left group of Mr. D'Alema may try to hold on to power until it can regroup in time for the elections in April 2001.

Mr. D'Alema's move comes two days after he offered his resignation to the President. The latter had rejected it and asked Mr. D'Alema to go back to Parliament and make a new effort to restructure his coalition. It is possible that the centre-left parties may agree on a new name to replace the seemingly unpopular Mr. D'Alema, a former communist who functions as a centrist politician. The prospective candidate to replace Mr. D'Alema is Mr. Giuliano Amato (61), a Columbia University trained lawyer. Mr. Amato speaks fluent English and is widely rated as the ``socialist'' face of the centre-left politics. However, he is not a member of Parliament. His name was proposed by the Green Party.

Mr. Amato has close connections with the Bill Clinton administration of the United States and at one time was rated as Mr. Clinton's ``top choice'' to head the IMF early this year.

Another likely candidate for prime ministership is the Speaker of the Senate, Miss Nicola Mancino, who can serve as a caretaker Prime Minister for about 12 months until the next elections.

Mr. Berlusconi's coalition won eight out of 15 regions and for the first time, Italians voted directly for regional Presidents, who are akin to the State Governors in the U.S.

On May 21, Italians will vote in a nation-wide referendum that proposes to eliminate a 25 per cent quota of proportional representation seats in Parliament. According to analysts, this is the root cause of the inherent instability in the Italian political system.

Mr. Berlusconi has focused attention on national issues and has conveniently ignored regional ones in what was after all a regional election. Estimates of what Mr. Berlusconi has spent on elections vary widely and range from $ 150 to $ 200 millions.

Mr. Berlusconi has been under ``a cloud'' for his tax affairs and accusations of trying to bribe government officials.

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