Crisis deepens as Italy speaker refuses to resign

By Philip Pullella

ROME (Reuters) - The influential speaker of Italy's lower house refused to step down on Friday after being censured by his own party, and said his supporters could vote against the government of former ally Prime Minister Silvio Berlusconi.

"Obviously I have no intention of resigning," Gianfranco Fini told a news conference a day after Berlusconi effectively booted him out of the party they founded jointly two years ago, raising the specter of early elections.

A combative Fini attacked Berlusconi for "having not exactly a liberal concept of democracy" and for trying to run a government like an autocratic CEO, "which has nothing to do with our democratic institutions."

Standing behind the 58-year-old Fini were parliamentarians who will join him in his party rebellion, calling the faction Freedom and Future for Italy.

A parliamentary official later said they had 33 members in the lower house plus Fini, enabling them to deprive Berlusconi of a majority there. They have 10 supporters in the Senate, which could cut Berlusconi's majority there to just two votes.

Berlusconi, who accused Fini of being a traitor and conspirator and trying to inflict a "slow death" to their party, met party leaders late on Friday to decide his next move.

Fini said his fellow rebels would "loyally support the government every time it acts within the framework of the electoral program, but will not hesitate to fight proposals that are unfair or damaging to the wider interest."

He did not mention the risk of early elections, which commentators said were now a real possibility.