Uncertainty about the future of the government and strong anti-political sentiment dominated Italian politics in 2007. Following a government crisis in February, rooted in the question of Italy-s role in Afghanistan, Prime Minister Romano Prodi was able to re-establish his coalition, but in the spring it suffered a clear setback in local elections amidst a climate of growing unpopularity. Initial chapters in this volume analyse these events as well as some important initiatives aimed, in different ways, at containing public disaffection towards the political class: the establishment of the Democratic Party, the electoral referendum campaign, and Silvio Berlusconi-s announcement of the birth of a new, center-right political party. As demonstrated in following chapters, the government did still manage to achieve a degree of success during the year in combating tax evasion and reducing the budget deficit as a result of increased tax revenue and more effective control of public expendit
