Italy’s Government and Prime Minister May Face New Charges

Weren’t the Old Charges Enough for the Prime Minister to Quit?

Europe’s problems are diverse, there is no single common element linking the countries that face severe economic difficulties.  In Ireland the problem was a real estate speculation bubble that burst, followed by government guarantees of bank debt which they could not keep.  In Greece the budget deficit fueled by tax evasion and wasteful public spending has caused their crisis.  Portugal and Spain have similar budget problems, but for different reasons.

The problem in Italy has been the government itself and the Prime Minister.  The center right government is led by Silvio Berlusconi, a very wealthy businessman who has tried to lead the same private life he led as a private citizen while he has been Prime Minister.  The result has been a series of charges against him with respect to both his business dealing and more importantly his private life.  The constant investigations into his activities have almost paralyzed an already fractured government.

The Guardian is now reporting that there are new accusations that are expected to be brought against the Prime Minister.  Most deal with the alleged sordid lifestyle of the Mr. Berlusconi, but one of the possible revelations could be damaging to Italy and Europe as a whole.



We all join Mr. Berlusconi in praying that the new charges
are not true.



Against a background of concern that Italy risks being dragged into a Greek-style debt crisis, rumours have been circulating that investigators recorded the prime minister as he made a grossly obscene reference to the German chancellor, Angela Merkel. The chancellor's co-operation is vital to resolving the debt crisis on the euro zone's southern flank.

All of this is exactly what Europe and Italy and Germany do not need.  As unlikeable a person as Mr. Berlusconi has turned out to be, one certainly hopes that this rumor at least is false.  Of course in Europe these days the attitude is to “hope for the best and expect the worst”.