Italian Prime Minister Silvio Berlusconi did what he promised and resigned as soon as eurozone-related austerity measures were approved by Parliament.
He will be replaced by Mario Monti, 68, who will shoulder the responsibility of avoiding the collapse of the third largest economy in the eurozone.
On Saturday, Berlusconi officially stepped down as PM, and his rather ignominious exit—booed and jeered by a large, angry crowd outside the presidential palace—clearly shows what a polarizing figure he is. On Sunday, Italian President Giorgio Napolitano offered the post to Monti.
In stark contrast to the colorful and controversial Berlusconi, Monti is described as a gray technocrat who shuns media and social events. Monti has held two highly influential posts as EU commissioner for Internal Market, Services, Customs, and Taxation (1995–1999) and for Competition (1999–2004). He is an international adviser to Goldman Sachs and The Coca-Cola Company and also lifetime senator in the Italian Senate.
On the surface, Monti is exactly the kind of person who could regain the market’s trust in Italy, but he will most likely face opposition within Parliament, and has the difficult task of getting the severely debt-ridden and slow-growing Italian economy back on track. Among the many influential people in his corner is Christine Lagarde, head of the International Monetary Fund (IMF), who praised Monti’s ability last week. This friendship may prove important for Italy in the days ahead.
Monti will now have to name his Cabinet before he can be sworn in as PM, and then survive a vote of confidence in both houses of the Italian Parliament.
Berlusconi, 75, may not yet have abandoned politics, however. According to various comments he has made over the past few days, he may already be preparing his comeback. This would hardly be surprising, since Berlusconi has made several comebacks already in his political career. And although he has lost political power for now, he is still one of Italy’s richest people and, controversially, owns and controls a significant proportion of the Italian media, especially television.
Having made his fortune in construction in the ‘60s, Berlusconi moved into media in 1973 and founded his first small TV channel, Telemilano, which grew into Italy’s No. 1 media empire, Mediaset. Today, he also owns, among other things, Italy’s largest publishing house, Mondadori; daily newspaper Il Giornale; and AC Milan, one of the world’s top soccer teams, all through his holding company Fininvest.
In an attempt to explain his clout in American terms, the PBS show “Wide Angle” once said that he combined the political power of (then) President George W. Bush, the media influence of Rupert Murdoch, and the wealth and ambition of Steve Forbes and Ross Perot. Berlusconi has made election promises to sell off media assets to avoid conflicts of interest, but never fulfilled them.
Controversy surrounded Berlusconi long before he entered politics. In 1981 he was revealed as a member of the secret lodge P2, led by former fascist Licio Gelli, whose goal was to move Italy toward more authoritarian rule. Although Berlusconi has tried to distance himself from P2, media reports and documentaries have made allegations that the same wealthy, secretive, right-wing network that made up P2 has been financing and supporting him all along.
Berlusconi has been tried for a remarkable array of crimes, from perjury, embezzlement, and tax evasion to mafia collusion, corruption, and sex with a minor. He has not been sentenced. Since he moved into politics, he has been accused by the opposition and commentators of subverting the justice system to avoid conviction and dragging out court cases interminably. Berlusconi himself has characterized the many cases against him as political persecution. Currently, there are three ongoing trials against him.
His political life has not been less stormy, and he has survived over 50 votes of confidence. Despite this, he is the longest serving prime minister in the extremely turbulent political history of postwar Italy. In 1993, he founded the Forza Italia (“Go Italy!”) political party and was elected PM for the first time in 1994. He was forced to resign in 1995, however, as his coalition fell apart. In 2001 he returned to win the parliamentary elections with a new coalition and served as prime minister until 2006, and then again from 2008 up until Saturday.
