Tactical maneuver?

Italian Prime Minister Silvio Berlusconi has said he will agree to a no-confidence vote sought by political rivals - but that next year's budget will have to be passed first.

Berlusconi said he would test his support in Italy's upper house, the Senate, and the lower Chamber of Deputies only "after the definite approval of the budget."

The move is being seen as an effort by the 74-year-old to regain the political initiative after a difficult few months for his government.

Berlusconi's office said on Saturday that there was an "undeniable necessity" to approve the 2011 budget to ensure greater economic stability amid turbulence on the financial markets.

The government then "intends to verify its continued confidence in the Senate and, immediately after, in the Chamber of Deputies," a statement said.

Motion already in place

The move comes after the country's largest opposition party pushed forward with plans for a vote against Berlusconi's government.

A no-confidence motion, for which no date has yet been set, was submitted on Friday by the leader of the Democratic Party Dario Franceschini with support from the anti-corruption party IDV. The budget debate is due to begin on Thursday.

Berlusconi's government has been in a precarious state since he expelled lower house speaker Gianfranco Fini from the People of Freedom (PDL) party that both men co-founded in 2008.

Fini set up his own center-right party, bringing supporters from the chamber with him and depriving Berlusconi - now in his third term as premier- of a guaranteed majority.

Members of government set to resign

Four members of the fragile government who are loyal to Fini are expected to step down on Monday.

Fini, whose Future and Freedom for Italy (FLI) party voted against a Berlusconi immigration bill last week, has now joined leaders of other political parties in calling for Berlusconi to resign. The demands follow the latest in a long-running series of sex-scandal allegations.

The premier has so far refused to step down and has said he is determined to remain in power until the end of the parliamentary term in 2013. By demanding that the vote in the Senate, where he still has a majority, the premier may be hoping to regain the political initiative and make his removal in the lower house more difficult.

Differing confidence votes in the two chambers could make it necessary for fresh elections to be called, which opinion polls say Berlusconi is likely to win - despite a significant dip in his popularity among the electorate.

Popular calls for Berlusconi's resignation have led to demonstrations in the streets, including two "No Berlusconi" days, one in October and the other in December last year.

Richard Connor (dpa, AFP, Reuters)
Editor: Andy Valvur