Italian Economy Minister Domenico Siniscalco has resigned over government infighting and the administration's failure to oust central bank governor Antonio Fazio over a banking scandal, the Treasury said this morning.
"Siniscalco has resigned," a Treasury spokesman said, confirming media reports and adding that the reasons for his decision to quit as outlined in newspapers were correct.
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"Honestly, I couldn't take it anymore" - Italian Economy Minister Domenico Siniscalco |
"Honestly, I couldn't take it anymore," Siniscalco was quoted as saying by La Repubblica.
"The problem isn't Fazio, but (the government) which is incapable of resolving the problem. For this I'm not embittered, I'm scandalised."
Siniscalco has repeatedly called on the Bank of Italy governor to step down over accusations that he showed bias against Dutch bank ABN AMRO in a bank takeover battle.
La Repubblica quoted Siniscalco as calling Fazio an institutional "monster" hiding behind central bank independence. Fazio has denied any wrongdoing.
Local media said Siniscalco was also angered by deep divisions within the centre-right government over his 2006 budget proposals.
Siniscalco's resignation is a major blow to Berlusconi, struggling to hold the argumentative ruling coalition together before national elections due by May 2006. Opinion polls show the centre-left opposition well in the lead.
The news could also damage Italy's credibility on financial markets, with analysts fearing the government might push through a voter-friendly budget despite weak public finances and a growing deficit.