The political forces behind expremier Silvio Berlusconi sharply raised the stakes Friday in their battle to return to power.
They declared opposition to the government’s deficit-cutting package, saying it relied too heavily on higher taxes.
The announcement sent politics into a new stage of uncertainty and pushed the lira down to a record low against the benchmark German mark.
Premier Lamberto Dini’s government presented the package, mainly new taxes and some cost-cutting, as one of his four priorities. He has said in the past he would resign if his limited mandate is blocked.
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