Berlusconi faces new scandal as Italy crisis mounts

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Prime Minister Silvio Berlusconi faced new accusations on Friday over a prostitution scandal which has added a fresh distraction to Italy’s efforts to avert a debt crisis that could tear apart the euro zone. Berlusconi is reported to have told Valter Lavitola, a shadowy consultant now wanted by police, to stay out of Italy during an investigation into an alleged extortion plot against the premier in which Lavitola was suspected to be involved. Niccolo Ghedini, Berlusconi’s lawyer, said in a statement that the accusation, based on a police wiretap cited by the weekly L’Espresso, was “absurd and baseless”.
The story was reported on the front pages of major Italian dailies on Friday, bringing renewed calls from the opposition for Berlusconi to resign. “This telephone call is the cherry on the cake,” Enrico Letta, a senior member of the opposition Democratic Party told La Repubblica daily. “The prime minister is not leading the country, which in fact has no leader.” he said, adding that Berlusconi should step aside. Naples magistrates have issued a warrant for Lavitola’s arrest but his whereabouts are unknown and he is believed to be outside Italy. Berlusconi is due to be questioned by magistrates next week as a witness in the case.