Berlusconi withdraws support for Monti Silvio Berlusconi, former prime minister of Italy Silvio Berlusconi's centre-right party has withdrawn its support for Mario Monti's ruling technocrats in a senate vote on a key economic reform bill, taking the first step that could lead to the fall of the government and snap elections. The vote on measures to promote growth in the economy passed on Thursday morning with the support of the centre-left Democratic party, but not with an absolute majority after centre-right senators loyal to the former prime minister decided not to participate. The reform legislation passed with 127 votes in favour, 17 against and 23 abstentions. The non-participation of Mr Berlusconi's disintegrating People of Liberty (PDL) party demonstrated that the government could not necessarily rely on a majority in the senate, which has 315 seats plus several life senators, including Mr Monti. Lawmakers said Mr Monti should consult with President Giorgio Napolitano, the head of state, to determine his next steps. Mr Napolitano, who has the constitutional power to dissolve parliament, could ask Mr Monti to call votes of confidence in both chambers to see whether the government has the numbers to continue in office until the end of its mandate next April. The crisis has been precipitated by a power struggle within Mr Berlusconi's party, which is divided over who should lead it into elections next spring and on what platform. Markets reacted nervously to the outbreak of political uncertainty. Yields on Italian bonds, which had been falling, rose sharply with the yield on 10-year bonds increasing by 13 basis points to 4.56 per cent, while two-year yields jumped 17bp to 3.47 per cent. Shares on the Milan stock exchange were down more than 1 per cent after the vote. Lawmakers saw Mr Berlusconi's decision to exclude his supporters from the morning vote as a demonstration of his continuing command over his disintegrating party. But it remains to be seen whether Mr Berlusconi has the determination or enough backing from within his party to bring the government down in the event that Mr Monti calls a vote of confidence. A date has not been set for elections, but March 10 had been widely seen as likely. Should the government fall then elections could be held in January or early February. On Wednesday night Mr Berlusconi issued a terse statement in which he launched a fierce attack on Mr Monti's handling of the economy, declaring that Italy was "on the brink of the abyss" with increased unemployment, rising debts, a collapse in Italians" spending power, unsustainably high taxes, companies closing, a crumbling construction sector and plunging car sales. After resigning a year ago under market and internal party pressures to make way for the unelected Mr Monti, Mr Berlusconi said on several occasions he would not run again as prime minister. In his Wednesday statement he left that option open, saying many in his party were calling on him to be a candidate.