Prodi steps down

After more than a week of fruitless negotiations and last-minute deal-brokering, Italy's Prime Minister, Romano Prodi, finally gave up the struggle just after 3.30pm yesterday. Despite concessions on health, employment, shorter working hours, and on pensions, there was nothing he could do to stop the small far-left party Rifondazione Comunista from opposing his budget package for next year and plunging the country into crisis.

He had tried once on Tuesday, with an impassioned speech to the Chamber of Deputies where Rifondazione holds the balance of power. And his team tried again all Wednesday night, looking for common ground where in reality no common ground existed because of the intransigent Rifondazione leadership.

"We have no choice but to vote against this budget," ran the conclusion of a withering speech by Rifondazione's Oliviero Diliberto. "You were the ones who did not want to compromise, you were ones who didn't want to reach an agreement, it is you who have acted superficially and arrogantly."

On hearing this twisted version of events, Mr Prodi wasted no time in announcing he was on his way to the presidential palace to resign. The luminaries on the government benches sat ashen-faced, scarcely believing that the left's first experience of power in Italy since the Second World War should end in this petty, rancorous manner. As the parliamentary session broke up, there were emotional embraces and some open weeping.