Italy votes for center-left candidate for premier

ROME (AP) — Italians are choosing a center-left candidate for premier for elections early next year, an important primary runoff given the main party is ahead in the polls against a center-right camp in utter chaos over whether Silvio Berlusconi will run again.

Sunday’s runoff pits a veteran center-left leader, Pier Luigi Bersani, 61, against the 37-year-old mayor of Florence, Matteo Renzi, who has campaigned on an Obama-style “Let’s change Italy now” mantra.

Nearly all polls show Bersani winning the primary, after he won the first round of balloting Nov. 25 with 44.9 percent of the vote. Since he didn’t get an absolute majority, he was forced into a runoff with Renzi, who garnered 35.5 percent.

After battling all week to get more voters to the polling stations for round two, Renzi seemed almost resigned to a Bersani win by Sunday, saying he hoped that by Monday “we can all work together.”

Bersani, a former transport and industry minister, seemed confident of victory as well, joking about Berlusconi’s flip-flopping political ambitions by asking “What time did he say it?” when told that the media mogul had purportedly decided against running.

Next year’s general election will largely decide how and whether Italy continues on the path to financial health charted by Premier Mario Monti, appointed last year to save Italy from a Greek-style debt crisis.

The former European commissioner was named to head a technical government after international markets lost confidence in then-Premier Berlusconi’s ability to reign in Italy’s public debt and push through sorely needed structural reforms.

Berlusconi has largely stayed out of the public spotlight for the past year, but he returned with force in recent weeks, announcing he was thinking about running again, then changing his mind, then threatening to bring down Monti’s government, and most recently staying silent about his political plans.

His waffling has thrown his People of Freedom party into disarray and disrupted its own plans for a primary — all of which has only seemed to bolster the impression of order, stability and organization within the center-left camp.

A poll published Friday gave the Democratic Party 30 percent of the vote if the election were held now, compared with some 19.5 percent for the upstart populist movement of comic Beppe Grillo, and Berlusconi’s People of Freedom party in third with 14.3 percent. The poll, by the SWG firm for state-run RAI 3, surveyed 5,000 voting-age adults by telephone between Nov. 26 and 28. It had a margin of error of plus or minus 1.36 percentage points.

It’s quite a turnabout for Berlusconi’s once-dominant movement, and a similarly remarkable shift in fortunes for the Democratic Party, which had been in shambles for years, unable to capitalize on Berlusconi’s professional and personal failings while he was premier.

But Berlusconi’s 2011 downfall and a series of recent political party funding scandals that have targeted mostly center-right politicians have contributed to the party’s rise as Italy struggles through a grinding recession and near-record high unemployment.

Angelino Alfano, Berlusconi’s hand-picked political heir, seemed again exasperated Sunday after a long meeting with his patron over Berlusconi’s plans. News reports have suggested Berlusconi might split the party in two and re-launch the Forza Italia party that brought him to political power for the first time in 1994.

“We have to work to reconstruct the center-right, and reconstructing it means having a big center-right party,” not a divided one, Alfano said.

He added that Berlusconi didn’t say one way or another if he would run himself. “It’s his choice,” he said. “If there are any decisions in this regard, he’ll be the one to say so.”

___

Follow Nicole Winfield at www.twitter.com/nwinfield

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7 Quirky Christmas Gift Ideas

‘Tis the season to give…bacon-shaped Christmas tree ornaments? Stocking-stuffer candy simulating black lumps of coal? Crime scene tape for wrapping packages? How about a dreidel with Santa’s picture on it?

Yes to all these and more, say fans of quirky gifts.

Online retailers specializing in leg-lamps–the kind made famous by the movie “A Christmas Story”–and in Emergency Santa Kits say business is brisk.

Seattle novelty-seller Archie McPhee, for instance, which makes the Emergency Santa Kit, reports its business is up 20 percent from last year. Each Kit contains an inflatable white beard and red hat. “It’s in case you’re ever on an airplane flight and you suddenly have to play Santa,” explains McPhee’s spokesperson and self-styled Director of Awesomeness, David Wall.

Anything involving bacon, he says, has been selling well—so well that McPhee dedicates a portion of its website to bacon-inspired items, including candy canes, ornaments and toothpaste.

“People just naturally enjoy bacon,” he says. “At a time when everybody is so health-conscious, it’s become a kind of ‘rebel’ food. It seems naughty. To our customers, bacon has become a sign of rebellion against the status quo.”

Online retailer Perpetual Kid sells black, lump-shaped candy-coal. Says vice president Wendy Paula, “We’re definitely seeing people looking for silly products this year—things you buy for their ‘smile value.’ Candy coal has been Christmas season favorite for us for years.” She herself grew up with it. “It’s just got to be in your stocking.”

Unlike some novelty purveyors, says Paula, Perpetual Kid, shies away from anything that could be considered offensive or in bad taste. Not so Things You Never Knew Existed, a website that appears to have cornered the market on flatulent-Santa items. These include a Pull My Finger Santa’ and a spherical ornament simulating Santa’s buttocks.

For a slideshow of quirky items appropriate (or not) for holiday giving, read on.

“The world’s only beanie with a built-in beard,” trumpets website Fab.com. The tightly-knit cap and attached face-warmer is perfect for snowball fights, says the site, and will keep any chin warm on the coldest of days. “A great gift for the facial-hair challenged.” ($ 29)

Website for Perpetual Kid calls this cinnamon-flavored candy coal the perfect stocking stuffer: “You can always tell who has been naughty Christmas morning, since this candy will temporarily turn your mouth blue! Great for office parties and gift exchanges.” ($ 4.49)

The dreidel depicts Santa on one side, a Christmas tree on the other. “Don’t choose between Christmas and Hanukkah,” says Archie McPhee’s website. “Choose Chrismukkah! Imagine the fun you’ll have playing the dreidel game by the light of the menorah while waiting for Santa and his reindeer to arrive.” ($ 4.50)

“Big bacon flavor in a candy cane,” promises Archie McPhee. Canes come in both regular size and colossal. Of the collosal, the site says, “If there were a king of bacon, this would be his scepter. It’s bacon-y Christmas perfection.” For proper dental hygiene, you’ll want to brush afterwards with bacon-flavored toothpaste, also available on the website. (Colossal cane, $ 5.00)

Archie McPhee doesn’t explicitly recommend this tape for sealing up the seams of wrapping paper you have used to decorate your gifts—but just think how festive and disturbing it will look underneath the tree. Alternatively, says the website, you can use it to “mark off the scene of an itty-bitty murder.” ($ 4.50).

Christmas-in-a-tin, Archie McPhee calls its Emergency Santa Kit. “Let’s say you’re on a long flight, and everyone around you is frowning and grumpy,” says the site. Each Kit contains an inflatable white beard and jaunty Santa hat. “Just open the tin, inflate the beard, put on the hat, and shake your belly like a bowl full o’ jelly.” Before you know it, “Everyone will be sitting on your lap.” ($ 12.00)

The morning after Christmas you’ll run no risk of oversleeping if someone has been kind enough to give you this especially aggressive alarm clock. Hit its snooze button once too often, and Clocky takes matters into its own hands (or feet) by rolling away from you on powered wheels. “It will literally jump off your nightstand and scurry way, forcing you to get up out of bed and go get it to turn it off,” says a spokesperson for novelty retailer Fab.com. ($ 45.00)

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German producers plan Pope Benedict biopic

MUNICH, Germany (Reuters) – Two German producers have bought the film rights to an upcoming biography of Pope Benedict by the Bavarian author of three best-selling interview books with the pontiff.

The Odeon Film company said producers Marcus Mende and Peter Weckert planned a film for international release based on a biography by journalist Peter Seewald due to be published in early 2014.

Seewald’s book-length interviews with Benedict – two as Cardinal Joseph Ratzinger and one as pope – have given readers many insights into the life and thoughts of the shy theologian who now heads the Roman Catholic Church.

Seewald has signed on as a consultant to the scriptwriter, Odeon Film said in a statement on Thursday. It gave no information about the schedule for the film or who might play the main role.

“The producers plan an international film that illustrates all aspects of the extraordinary life and work of Joseph Ratzinger from his birth on Easter night in 1927 in Marktl am Inn in Bavaria to his pontificate today,” it said.

Benedict’s predecessor Pope John Paul was the subject of a dozen documentary films around the world and two major television movies in the United States.

(Reporting by Tom Heneghan; editing by Andrew Roche)

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Geithner predicts Republicans will accept higher tax rates

WASHINGTON (Reuters) – Treasury Secretary Timothy Geithner pressed Republicans to offer a plan to increase revenues and cut government spending, and predicted they would agree to raise tax rates on the wealthiest to secure a deal by year-end to avoid the “fiscal cliff.”

In a blitz of appearances on five Sunday morning talk shows, Geithner insisted that tax rates on the richest needed to go up in order to reach a deal, a step Republicans have so far resisted, and he dismissed much of the contentious rhetoric from last week as “political theater.”

“The only thing standing in the way of would be a refusal by Republicans to accept that rates are going to have to go up on the wealthiest Americans. And I don’t really see them doing that,” Geithner, who is leading the Obama administration‘s fiscal cliff negotiations, said on NBC’s “Meet the Press.”

The comments mark the latest round of high-stakes gamesmanship focusing on whether to extend the temporary tax cuts that originated under former President George W. Bush beyond their December 31 expiration date for all taxpayers, as Republicans want, or just for those with incomes under $ 250,000, as President Barack Obama and his fellow Democrats want.

Republicans, who control the House of Representatives but are the minority in the Senate, have expressed a willingness to raise revenues by taking steps such a limiting tax deductions, but they have largely held the line on increasing rates.

A handful of House Republicans expressed flexibility beyond that of their party leaders about considering an increase in tax rates for the wealthiest, as long as they are accompanied by significant spending cuts.

But most House Republicans refuse to back higher rates, preferring to raise revenue through tax reform.

“There’s not going to be an agreement without rates heading up,” Geithner said bluntly on CNN’s “State of the Union.”

The scheduled expiration of the Bush-era tax cuts and automatic reductions government spending set to take hold early next year would suck about $ 600 billion out of the economy and could spark a recession. The Obama administration and Congress are engaged in talks to avoid the fiscal cliff with a less-drastic plan to reduce U.S. budget deficits.

WHO SHOULD PAY?

Geithner’s Sunday interviews are part of a broader push to build public support for the Democrats’ position in the negotiations. Obama has made campaign-style appearances, including visiting a Pennsylvania toy factory on Friday where he portrayed Republicans as scrooges at Christmas time.

While breaking no new ground on the Obama administration’s position on Sunday, Geithner repeatedly urged Republicans to provide their own plan.

“They said they’re prepared to raise revenues but haven’t said how, or how much, or who should pay,” Geithner said on NBC.

In an interview with the Wall Street Journal on Friday, the Republican leader in the Senate, Mitch McConnell of Kentucky, asked Democrats to accept an increase in the Medicare eligibility age, impose higher Medicare premiums for the wealthy, and slow cost-of-living increases for Social Security.

At least one of those suggestions appears to have White House support. On CNN, Geithner said the administration‘s proposal included a modest rise in premiums for higher-income Medicare beneficiaries.

“What we can’t do is sit here trying to figure out what works for them,” Geithner said. “The ball really is with them now.”

The administration has said it is willing to find savings in the Medicare and Medicaid healthcare programs for the elderly and poor, but Geithner reiterated in an interview with ABC’s “This Week” that it would only be open to looking at changes in the Social Security retirement program outside of the context of a fiscal cliff deal.

(Reporting By Aruna Viswanatha; Editing by Eric Beech)

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'Cliff' talks: Geithner invites GOP counteroffer

WASHINGTON (AP) -- President Barack Obama is ready to entertain Republican proposals for spending cuts, but GOP lawmakers must first commit to higher tax rates on the rich and specify what additional spending cuts they want in a deal to avoid the looming "fiscal cliff," Treasury Secretary Timothy Geithner said.

"The ball really is with them now," Geithner, one of the president's chief negotiators with Capitol Hill, said during appearances on five Sunday talk shows. He acknowledged that Republicans are "having a tough time trying to figure out what they can do, what they can get support from their members for." The White House "might need to give them a little more time to figure out where they go next."

Geithner presented congressional leaders Thursday with Obama's postelection blueprint for averting the combination of hundreds of billions in tax increases and spending cuts that will take effect beginning in January if Washington doesn't act to stop it.

But House Speaker John Boehner, R-Ohio, dismissed the plan as "not serious," merely a Democratic wish list that couldn't pass his chamber.

As outlined by administration officials, the plan calls for nearly $1.6 trillion in new tax revenue over the next decade, while making $600 billion in spending cuts, including $350 billion from Medicare and other health programs. But it also contains $200 billion in new spending on jobless benefits, public works and aid for struggling homeowners — and would make it virtually impossible for Congress to block Obama's ability to raise the debt ceiling.

"I was just flabbergasted," Boehner said, describing his meeting with Geithner. "I looked at him and I said, 'You can't be serious?" The speaker, noting the short time between the Nov. 6 election and the new year, said time has been lost so far "with this nonsense."

With the George W. Bush-era tax cuts expiring and across-the-board spending cuts hitting in under a month, Boehner said, "I would say we're nowhere, period." He said "there's clearly a chance" of going over the cliff.

But Geithner, also in interviews that were taped Friday, offered a somewhat rosier view. "I think we're far apart still, but I think we're moving closer together," he said.

He called the back-and-forth "normal political theater," voicing confidence a bargain can be struck in time, and said all that's blocking it is GOP acceptance of higher tax rates on the wealthy.

"It's welcome that they're recognizing that revenues are going to have to go up. But they haven't told us anything about how far rates should go up ... (and) who should pay higher taxes?" Geithner said.

He said so far, GOP proposals demonstrate "political math, not real math."

Republican leaders have said they accept higher tax revenue overall, but only through what they call tax reform — closing loopholes and limiting deductions — and only coupled with tough measures to curb the explosive growth of Medicare, Medicaid and Social Security.

But Geithner insisted that there's "no path to an agreement (without) Republicans acknowledging that rates have to go up for the wealthiest Americans." He also said the administration would only discuss changes to Social Security "in a separate process," not in talks on the fiscal cliff.

As to spending, Geithner said if Republicans don't think Obama's cutting enough spending, they should make a counter-proposal. "They might want to do some different things. But they have to tell us what those things are," he said.

Republicans have also rejected Obama's debt ceiling proposal. Geithner noted it was Senate Minority Leader Mitch McConnell who first suggested it, as a temporary measure in the summer 2011 deficit deal. The administration would make it permanent. "It was a very smart way by a senator with impeccable Republican credentials to ... lift this ... periodic threat of default," Geithner said. "And that's an essential thing for us."

Geithner voiced sympathy for Republicans leaders, saying they're caught between the voters' endorsement of higher taxes on the rich and a House GOP caucus that thinks all tax increases are job-killers.

"They really are in a difficult position," he said. "And they're going to have to figure out their politics of what they do next."

In the past week, Obama has held a series of campaign-style appearances — including one in a swing district in Pennsylvania — urging lawmakers to accept a Senate-passed measure extending tax cuts for all but the top 2 percent of wage-earners. He'll continue the effort when he meets with governors on Tuesday and speaks to the Business Roundtable on Wednesday.

GOP leaders contend letting top-end tax cuts run out would hit small businesses and cost jobs.

Still, Sen. Lamar Alexander, R-Tenn., said Republicans will "hold our nose and raise some revenues" if the result is a deal that reins in runaway debt. But he said the onus is on Obama to knuckle down to talks.

"I'm ready for the president to get off the campaign trail, and get in the White House and get a result," Alexander told reporters in Nashville on Saturday. "Right now he's got the presidential limousine headed toward the fiscal cliff with his foot on the accelerator."

Geithner appeared on CBS' "Face the Nation," NBC's "Meet the Press," CNN's "State of the Union," ABC's "This Week," and "Fox News Sunday." Boehner was on Fox, too.

___

Associated Press Writer Erik Schelzig in Nashville contributed to this report.

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7 Quirky Christmas Gift Ideas

‘Tis the season to give…bacon-shaped Christmas tree ornaments? Stocking-stuffer candy simulating black lumps of coal? Crime scene tape for wrapping packages? How about a dreidel with Santa’s picture on it?

Yes to all these and more, say fans of quirky gifts.

Online retailers specializing in leg-lamps–the kind made famous by the movie “A Christmas Story”–and in Emergency Santa Kits say business is brisk.

Seattle novelty-seller Archie McPhee, for instance, which makes the Emergency Santa Kit, reports its business is up 20 percent from last year. Each Kit contains an inflatable white beard and red hat. “It’s in case you’re ever on an airplane flight and you suddenly have to play Santa,” explains McPhee’s spokesperson and self-styled Director of Awesomeness, David Wall.

Anything involving bacon, he says, has been selling well—so well that McPhee dedicates a portion of its website to bacon-inspired items, including candy canes, ornaments and toothpaste.

“People just naturally enjoy bacon,” he says. “At a time when everybody is so health-conscious, it’s become a kind of ‘rebel’ food. It seems naughty. To our customers, bacon has become a sign of rebellion against the status quo.”

Online retailer Perpetual Kid sells black, lump-shaped candy-coal. Says vice president Wendy Paula, “We’re definitely seeing people looking for silly products this year—things you buy for their ‘smile value.’ Candy coal has been Christmas season favorite for us for years.” She herself grew up with it. “It’s just got to be in your stocking.”

Unlike some novelty purveyors, says Paula, Perpetual Kid, shies away from anything that could be considered offensive or in bad taste. Not so Things You Never Knew Existed, a website that appears to have cornered the market on flatulent-Santa items. These include a Pull My Finger Santa’ and a spherical ornament simulating Santa’s buttocks.

For a slideshow of quirky items appropriate (or not) for holiday giving, read on.

“The world’s only beanie with a built-in beard,” trumpets website Fab.com. The tightly-knit cap and attached face-warmer is perfect for snowball fights, says the site, and will keep any chin warm on the coldest of days. “A great gift for the facial-hair challenged.” ($ 29)

Website for Perpetual Kid calls this cinnamon-flavored candy coal the perfect stocking stuffer: “You can always tell who has been naughty Christmas morning, since this candy will temporarily turn your mouth blue! Great for office parties and gift exchanges.” ($ 4.49)

The dreidel depicts Santa on one side, a Christmas tree on the other. “Don’t choose between Christmas and Hanukkah,” says Archie McPhee’s website. “Choose Chrismukkah! Imagine the fun you’ll have playing the dreidel game by the light of the menorah while waiting for Santa and his reindeer to arrive.” ($ 4.50)

“Big bacon flavor in a candy cane,” promises Archie McPhee. Canes come in both regular size and colossal. Of the collosal, the site says, “If there were a king of bacon, this would be his scepter. It’s bacon-y Christmas perfection.” For proper dental hygiene, you’ll want to brush afterwards with bacon-flavored toothpaste, also available on the website. (Colossal cane, $ 5.00)

Archie McPhee doesn’t explicitly recommend this tape for sealing up the seams of wrapping paper you have used to decorate your gifts—but just think how festive and disturbing it will look underneath the tree. Alternatively, says the website, you can use it to “mark off the scene of an itty-bitty murder.” ($ 4.50).

Christmas-in-a-tin, Archie McPhee calls its Emergency Santa Kit. “Let’s say you’re on a long flight, and everyone around you is frowning and grumpy,” says the site. Each Kit contains an inflatable white beard and jaunty Santa hat. “Just open the tin, inflate the beard, put on the hat, and shake your belly like a bowl full o’ jelly.” Before you know it, “Everyone will be sitting on your lap.” ($ 12.00)

The morning after Christmas you’ll run no risk of oversleeping if someone has been kind enough to give you this especially aggressive alarm clock. Hit its snooze button once too often, and Clocky takes matters into its own hands (or feet) by rolling away from you on powered wheels. “It will literally jump off your nightstand and scurry way, forcing you to get up out of bed and go get it to turn it off,” says a spokesperson for novelty retailer Fab.com. ($ 45.00)

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7 missing in collapse of highway tunnel in Japan

TOKYO (AP) — At least seven people were feared missing and several dead after about 150 concrete panels fell from the roof of a tunnel on the main highway linking Tokyo with central Japan.

Efforts to rescue any survivors trapped inside the tunnel were hindered by heavy smoke after one vehicle caught fire inside the Sasago Tunnel, about 80 kilometers (50 miles) outside Tokyo.

Rescuers also temporarily suspended work because of fears of a further collapse. They were attempting to reach at least several vehicles believed buried in the rubble, including a truck whose driver was trapped inside and had called his company for help.

"I could hear voices of people calling for help, but the fire was just too strong," said a woman interviewed by public broadcaster NHK after she escaped from the tunnel.

The Fire and Disaster Management Agency issued a statement late Sunday saying five people were confirmed to have been in a car that burned inside the tunnel, and at least one other was in a truck. However, officials said they could not confirm the exact number of people believed dead.

Executives for Central Japan Expressway Co. said the company was investigating why the concrete panels had given way. A check of the 4.7-kilometer (3-mile) tunnel's roof in September and October found nothing amiss, they said.

It said two people were confirmed hurt, but the injuries were not severe.

The tunnel, which opened in 1977, is one of many in mountainous Japan. The location of the collapse, about 1.7 kilometers (a mile) inside the tunnel, was complicating rescue efforts, reports said.

Police vehicles, fire trucks and ambulances were massed outside the tunnel's entrance.

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Lindsay Lohan risks return to jail after double trouble

NEW YORK/LOS ANGELES (Reuters) – Lindsay Lohan on Thursday faced the possibility of being sent back to jail after a tumultuous 24 hours in which she was arrested in New York for assault, and charged in California with reckless driving and lying to police over a June car crash.

Lohan, 26, who has been to rehab, jail and court multiple times since a 2007 arrest for drunk driving and cocaine possession, is still on unsupervised probation in Los Angeles for a 2011 jewelry theft.

But prosecutors in Santa Monica, California, said in a statement on Thursday that the “Mean Girls” actress lied to police when she told them she was not at the wheel of her Porsche when it smashed into a truck on a busy highway in the summer.

They charged Lohan with three misdemeanor counts stemming from that collision, hours after the troubled starlet was arrested on suspicion of punching a woman in the face at a Manhattan nightclub.

Lohan’s New York attorney Mark Heller said the actress was “a victim of someone trying to capture their 15 minutes of fame.”

“From my initial investigation, I am completely confident that this case will be concluded favorably and that Lindsay will be completely exonerated,” Heller said in a statement on the nightclub incident.

Frank Mateljan of the Los Angeles City Attorney‘s office, which handled the 2011 jewelry case, said prosecutors were still awaiting paperwork from New York and Santa Monica to determine if they will pursue a probation violation case against Lohan.

A Los Angeles judge told Lohan in March that she must obey all rules until 2014, and advised her to stop night-clubbing and focus on her work.

The two incidents came during a rough week for the former “Parent Trap” child star, who was once considered one of the most promising young actresses in Hollywood.

Her comeback performance on Sunday as screen legend Elizabeth Taylor in the TV movie “Liz & Dick,” was panned by critics and watched by a disappointingly small U.S. TV audience of 3.5 million.

In New York, Lohan was briefly arrested shortly after 4 a.m. (0900 GMT) on Thursday on a third-degree misdemeanor assault charge against a 28-year-old woman, police said. The victim suffered minor injuries, New York Police Sergeant John Buthorn said.

Celebrity website TMZ.com said Lohan had been drinking heavily and lashed out in a stand-off over one of the members of British boy band The Wanted, who were also at the club after playing a concert in New York.

Lohan’s recent visits to New York have featured run-ins with police and public spats over the last three months.

In October, police were called to the Long Island home of Lohan’s mother, Dina, after a loud argument, though no arrests were made. In September, Lohan was arrested in Manhattan after a pedestrian told police her car had struck him in an alley, but charges were not filed.

(Reporting by Colleen Jenkins in New York and Jill Serjeant in Los Angeles; Editing by Xavier Briand and Eric Walsh)

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Italy votes for center-left candidate for premier

ROME (AP) — Italians are choosing a center-left candidate for premier for elections early next year, an important primary runoff given the main party is ahead in the polls against a center-right camp in utter chaos over whether Silvio Berlusconi will run again.

Sunday’s runoff pits a veteran center-left leader, Pier Luigi Bersani, 61, against the 37-year-old mayor of Florence, Matteo Renzi, who has campaigned on an Obama-style “Let’s change Italy now” mantra.

Nearly all polls show Bersani winning the primary, after he won the first round of balloting Nov. 25 with 44.9 percent of the vote. Since he didn’t get an absolute majority, he was forced into a runoff with Renzi, who garnered 35.5 percent.

After battling all week to get more voters to the polling stations for round two, Renzi seemed almost resigned to a Bersani win by Sunday, saying he hoped that by Monday “we can all work together.”

Bersani, a former transport and industry minister, seemed confident of victory as well, joking about Berlusconi’s flip-flopping political ambitions by asking “What time did he say it?” when told that the media mogul had purportedly decided against running.

Next year’s general election will largely decide how and whether Italy continues on the path to financial health charted by Premier Mario Monti, appointed last year to save Italy from a Greek-style debt crisis.

The former European commissioner was named to head a technical government after international markets lost confidence in then-Premier Berlusconi’s ability to reign in Italy’s public debt and push through sorely needed structural reforms.

Berlusconi has largely stayed out of the public spotlight for the past year, but he returned with force in recent weeks, announcing he was thinking about running again, then changing his mind, then threatening to bring down Monti’s government, and most recently staying silent about his political plans.

His waffling has thrown his People of Freedom party into disarray and disrupted its own plans for a primary — all of which has only seemed to bolster the impression of order, stability and organization within the center-left camp.

A poll published Friday gave the Democratic Party 30 percent of the vote if the election were held now, compared with some 19.5 percent for the upstart populist movement of comic Beppe Grillo, and Berlusconi’s People of Freedom party in third with 14.3 percent. The poll, by the SWG firm for state-run RAI 3, surveyed 5,000 voting-age adults by telephone between Nov. 26 and 28. It had a margin of error of plus or minus 1.36 percentage points.

It’s quite a turnabout for Berlusconi’s once-dominant movement, and a similarly remarkable shift in fortunes for the Democratic Party, which had been in shambles for years, unable to capitalize on Berlusconi’s professional and personal failings while he was premier.

But Berlusconi’s 2011 downfall and a series of recent political party funding scandals that have targeted mostly center-right politicians have contributed to the party’s rise as Italy struggles through a grinding recession and near-record high unemployment.

Angelino Alfano, Berlusconi’s hand-picked political heir, seemed again exasperated Sunday after a long meeting with his patron over Berlusconi’s plans. News reports have suggested Berlusconi might split the party in two and re-launch the Forza Italia party that brought him to political power for the first time in 1994.

“We have to work to reconstruct the center-right, and reconstructing it means having a big center-right party,” not a divided one, Alfano said.

He added that Berlusconi didn’t say one way or another if he would run himself. “It’s his choice,” he said. “If there are any decisions in this regard, he’ll be the one to say so.”

___

Follow Nicole Winfield at www.twitter.com/nwinfield

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Geithner predicts Republicans will accept higher tax rates

WASHINGTON (Reuters) – Treasury Secretary Timothy Geithner pressed Republicans to offer a plan to increase revenues and cut government spending, and predicted they would agree to raise tax rates on the wealthiest to secure a deal by year-end to avoid the “fiscal cliff.”

In a blitz of appearances on five Sunday morning talk shows, Geithner insisted that tax rates on the richest needed to go up in order to reach a deal, a step Republicans have so far resisted, and he dismissed much of the contentious rhetoric from last week as “political theater.”

“The only thing standing in the way of would be a refusal by Republicans to accept that rates are going to have to go up on the wealthiest Americans. And I don’t really see them doing that,” Geithner, who is leading the Obama administration‘s fiscal cliff negotiations, said on NBC’s “Meet the Press.”

The comments mark the latest round of high-stakes gamesmanship focusing on whether to extend the temporary tax cuts that originated under former President George W. Bush beyond their December 31 expiration date for all taxpayers, as Republicans want, or just for those with incomes under $ 250,000, as President Barack Obama and his fellow Democrats want.

Republicans, who control the House of Representatives but are the minority in the Senate, have expressed a willingness to raise revenues by taking steps such a limiting tax deductions, but they have largely held the line on increasing rates.

A handful of House Republicans expressed flexibility beyond that of their party leaders about considering an increase in tax rates for the wealthiest, as long as they are accompanied by significant spending cuts.

But most House Republicans refuse to back higher rates, preferring to raise revenue through tax reform.

“There’s not going to be an agreement without rates heading up,” Geithner said bluntly on CNN’s “State of the Union.”

The scheduled expiration of the Bush-era tax cuts and automatic reductions government spending set to take hold early next year would suck about $ 600 billion out of the economy and could spark a recession. The Obama administration and Congress are engaged in talks to avoid the fiscal cliff with a less-drastic plan to reduce U.S. budget deficits.

WHO SHOULD PAY?

Geithner’s Sunday interviews are part of a broader push to build public support for the Democrats’ position in the negotiations. Obama has made campaign-style appearances, including visiting a Pennsylvania toy factory on Friday where he portrayed Republicans as scrooges at Christmas time.

While breaking no new ground on the Obama administration’s position on Sunday, Geithner repeatedly urged Republicans to provide their own plan.

“They said they’re prepared to raise revenues but haven’t said how, or how much, or who should pay,” Geithner said on NBC.

In an interview with the Wall Street Journal on Friday, the Republican leader in the Senate, Mitch McConnell of Kentucky, asked Democrats to accept an increase in the Medicare eligibility age, impose higher Medicare premiums for the wealthy, and slow cost-of-living increases for Social Security.

At least one of those suggestions appears to have White House support. On CNN, Geithner said the administration‘s proposal included a modest rise in premiums for higher-income Medicare beneficiaries.

“What we can’t do is sit here trying to figure out what works for them,” Geithner said. “The ball really is with them now.”

The administration has said it is willing to find savings in the Medicare and Medicaid healthcare programs for the elderly and poor, but Geithner reiterated in an interview with ABC’s “This Week” that it would only be open to looking at changes in the Social Security retirement program outside of the context of a fiscal cliff deal.

(Reporting By Aruna Viswanatha; Editing by Eric Beech)

Seniors/Aging News Headlines – Yahoo! News

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