Italy president starts talks to end political deadlock

Italian President Giorgio Napolitano began two days of consultations with political leaders yesterday in a bid to determine who should be given the mandate to form a new government in the eurozone’s third largest economy. The country is in political stalemate following February elections which saw the winning center-left coalition fail to secure enough votes for the majority needed to govern. The deadlock has unnerved economic and political observers in Europe who warn that Italy risks falling back into the grip of the debt crisis — fears heightened in light of the bitter standoff over bank deposits in Cyprus which is sending tremors through the eurozone. Talks began with minor parties, including Prime Minister Mario Monti’s centrist bloc which came fourth in the Feb. 24-25 election. Napolitano is set to meet on Thursday with comedian Beppe Grillo, founder of the Internet-based Five Star Movement (M5S), and former premier Silvio Berlusconi and his center-right People of Freedom party (PDL). The talks are expected to wind up today with Pier Luigi Bersani, leader of a center-left coalition which secured a majority in the lower house at the election but lost out in the Senate. Political observers say Napolitano is likely to offer the mandate to Bersani, but only if the former Communist can persuade the president that he has the support of other parties to govern. Napolitano’s decision is not expected before tomorrow. Monti will stay on in an interim capacity until a new government is formed. Bersani and his Democratic Party (PD) has been seeking a deal with the M5S, which snapped up large amounts of protest votes, but the anti-politics movement has so far refused to help the left form a majority. A glimmer of hope came at the weekend when two non-mainstream center-left candidates were elected as Parliament speakers.