ROME: Italy's
prime minister resigned after launching a blistering attack on his own interior
minister, Matteo Salvini, accusing him of sinking the ruling coalition and
endangering the economy for personal and political gain. Prime Minister
Giuseppe Conte, addressing parliament after it was recalled from its summer
recess to decide the future of the 14-month-old government, accused the
far-right League party chief Salvini of seeking to cash in on his rising
popularity.

In a shock move
on Aug 8, Salvini declared that his alliance with the anti-establishment 5-Star
Movement was dead and called for elections, but the gambit could yet prove a
big political blunder and open the door to power for his rivals. Politicians
from 5-Star and the centre-left Democratic Party (PD) are openly discussing
forming a new coalition which would push the League into opposition and give
Italy a more centrist, pro-European government. "The interior minister has
shown that he is following his own interests and those of his party,"
Conte told a packed Senate, a stony-faced Salvini sitting by his side.
"His decisions pose serious risks for this country."

He described
Salvini's actions as reckless and "liable to tip the country into a spiral
of political uncertainty and financial instability". After the Senate
debate Conte, who belongs to neither of the coalition parties, handed his
resignation to President Sergio Mattarella, who said he would begin talks with
parliamentary groups to see if a new coalition can be formed. Failing that,
Mattarella would have to dissolve parliament, 3-1/2 years ahead of schedule, to
allow for autumn elections.

The consultations
with party delegations will begin with minor groups at 1400 GMT. Mattarella
will hear all the main parties on Thursday, concluding with 5-Star at 1500 GMT.
The PD's leadership is also scheduled to meet to discuss the prospect of
hooking up with 5-Star. The two parties have been bitter political foes for
years. Financial markets rallied on Conte's resignation, seemingly hopeful that
snap polls could be avoided.

Challenging
Europe

Salvini at times
shook his head, rolled his eyes or nodded to League senators as the prime
minister accused him of being "irresponsible", "reckless",
"alarming" and "disrespectful". Conte said he was worried
by Salvini's threat to call people into the country's squares if his drive for
elections were thwarted, as well as his demand for "full powers".
"We do not need men who have 'full powers', but people who have
institutional culture and a sense of responsibility," he said in an
hour-long speech in which he also denounced Salvini's habit of brandishing the
cross at his political rallies.

Touching on a
particularly sensitive subject, he also said Salvini should provide
explanations over allegations that the League attempted to obtain illegal
funding from Russia through a covert oil transaction. Salvini rejected Conte's
comments, saying other parties were afraid of going to elections and losing
their influence. He said his political goal was to challenge the European
Union's fiscal rules, which he has blamed for impoverishing the country. Rome
should spend at least 50 billion euros ($55 billion) to stimulate the
chronically weak economy, he added.

"I am not
afraid," he said. "I don't want Italy to be a slave to anyone, and I
don't want Italy to be given a long chain like a little dog. I don't want any
chain at all." Italy has not held an election in the autumn since World
War Two because the final months of the year are traditionally dedicated to
drawing up the budget-a key moment for a country with one of the world's
largest debt mountains. At the end of the parliamentary debate the League
withdrew the no-confidence vote in the government that it had tabled earlier
this month, but Conte said the move had come too late.

"I see that
the League's leader Matteo Salvini lacks the courage to take responsibility for
his actions. If there's a lack of courage, don't worry, I'll take
responsibility before the country that is watching us," said Conte.
Mattarella is likely to push for a swift decision by the 5-Star and PD on
whether they can work together. Failing that, he will probably dissolve
parliament and call a vote in late October or early November. "They won't
be able to run away from elections for ever," Salvini told reporters as
Conte met the president. - Reuters