ITALY: SPANISH PRESIDENCY DOES NOT SHARE CONCERN OVER POLITICAL CRISIS.

The crisis has been smouldering since the introduction of the Euro which was marked in Italy by several surprisingly Eurosceptic comments by some of Mr Berlusconi's Ministers, notably those by the Economics and Finance Minister Giulio Tremonti (see European Report 2648, Section II). Mr Ruggiero, who does not have the backing of a political party but who was highly regarded in economic circles, finally threw in the towel after seven months of skirmishes and rebuffs, including over Italy's participation in the Airbus A400M, which he considered as an integral part of European defence policy, opposed by Defence Minister Antonio Martino. Rejecting suggestions that Mr Ruggiero's resignation marked a break with his country's commitment to Europe, Mr Berlusconi stressed that "this Government's policy will be intrinsically and indisputably pro-European".His decision to take charge of foreign policy personally and for an indefinite period showed in any case his will to force his Government, which is split over Europe, to speak with one voice. The Italian Premier is due to keep Mr Ruggiero's diary commitments by attending in the guise of Foreign Minister a meeting in Paris on January 9 with his French, German and British counterparts. But he cancelled a meeting scheduled for January 8 in Rome with the Spanish Foreign Minister Josep Pique. Recognising that he acted in a hurry, the Italian Premier has also promised to organise a parliamentary debate on his country's policy towards the EU as quickly as possible.A former Director-General of the World Trade Organisation (WTO), Renato Ruggiero was hailed in June on the formation of the new Government as a guarantee of continuity and international credibility. He was notably sponsored by the powerful head of Italy's leading industrial group, Giovanni Agnelli, who regretted his departure, suggesting that "Italy is now weaker". Piero Fassino, Secretary of the main left-wing opposition party, the DS, described the development as a "a heavy blow to Italy's credibility and prestige. However, dismay at the resignation has spread beyond Italy's frontiers. Louis Michel, Belgium's Foreign Minister and the outgoing President of the General Affairs Council, described it as "bad news to the extent that Mr Ruggiero is an eminent, interesting, highly European individual and a committed humanist who offset the lack of European drive in a coalition not noted for its faith in the European Union". His French and German...