Crisis of Credibility

Tens of thousands of opposition activists took to the streets of Rome on Saturday to protest against the center-right government of Italian Prime Minister Silvio Berlusconi, accusing the embattled premier of undermining the nation's international credibility during a period of economic crisis.

The head of the leftwing Democratic Party, Pier Luigi Bersani, joined the protesters in their criticism of Berlusconi's handling of the debt crisis.

"Italy is on the most exposed side of the crisis because of an incompetent and discredited government," Bersani said. "For the country's reconstruction, we urge Italians to put us to the test (of) government and we will show them that we can be a reform party."

Berlusconi has come under increasing fire as the escalating eurozone debt crisis threatens to spread from Greece to Italy, the third largest economy in the 17-member currency union. Six members of Berlusconi's own party have called on the billionaire media tycoon to form a broader coalition with elements of the opposition to implement a package of growth and austerity measures.

Lack of credibility

During the G20 summit in Cannes, France, Berlusconi was unable to present a concrete reform package to Italy's global partners due to divisions within his own cabinet. Berlusconi said he would tie implementation of the reform package to a vote of confidence.

Italy agreed to allow the International Monetary Fund (IMF) and European Commission monitor the implementation of the reforms, which include selling off government assets and tax breaks to encourage youth employment.

The borrowing costs on Italy's massive debt, which amounts to 120 percent of the country's gross domestic product (GDP), have been rising which has raised concern that the country could succumb to default and place the future of the eurozone in question.

Author: Spencer Kimball (AP, AFP)
Editor: Mark Rossman