Italy's Berlusoni wins confidence vote

Italian prime minister, Silvio Berlusconi's centre-right coalition survived a vote of confidence in parliament today, but the slim margin of victory cast doubts over its ability to provide effective governance.

The alliance of Berlusconi's People of Liberty (PDL) party and the Northern League of Umberto Bossi scraped through winning 316 votes against 301 in Italy's lower house of parliament, which has a total of 630 deputies.

With the prospect of the coalition coming unstuck, leading to early elections and loss of their jobs, ''dissident'' MPs in Berlusconi's party chose to vote in favour of the government.

The prospect of a long spell of political uncertainty ahead cast a shadow on the debt markets where the yield on Italy's benchmark 10-year bonds rose to 5.85 per cent, the highest for two months, before easing ahead of the vote.

Analysts say although Berlusconi may be able to carry on with his slim majority, some of his supporters warn privately that this could be his ''last chance,'' dismayed over the coalition's inability to settle internal disputes and agree on substantial economic reforms.

According to commentators elections in early 2012, a year ahead of schedule, may be expected.