With the European Union (EU) threatening to launch disciplinary measures against the Italian government if they refuse to adopt measures to tackle the country's structural woes, and having been forced by his coalition partners in April to form a new government, Italian Prime Minister Silvio Berlusconi could have been forgiven for enjoying the mid-year parliamentary recess. The respite proved all too brief however, as Domenico Siniscalco’s resignation as finance minister once again exposed the deep divisions within the fractious ruling coalition.
Announcing his resignation through a national newspaper, Siniscalco—who was regarded a capable technocrat, generally above the political infighting within the ruling coalition—claimed that the inability of the government to remove Bank of Italy governor Antonio Fazio was the main reason for his departure. Siniscalco had been the most outspoken critic of Fazio within the government. His was the first voice among the growing chorus of cabinet members to call for Fazio's resignation, over revelations that he abused his position as the banking regulator, blocking attempts by the Dutch bank ABN AMRO to acquire Banca Antonveneta.
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