Italian president dissolves parliament ahead of election

Italian President Sergio Mattarella signs a decree to dissolve parliament at the Quirinale Presidential palace in Rome, Italy,

By Gavin Jones

ROME (Reuters) – Italian President Sergio Mattarella on Thursday dissolved parliament ahead of an election which is expected to produce a period of instability in the euro zone’s third largest economy.

Prime Minister Paolo Gentiloni’s cabinet began meeting to fix the date of the vote, which political sources have said will probably be March 4.

Earlier on Thursday Gentiloni defended the record of his year-old government and said he would remain in office and ensure continuity until a new government is in place.

With opinion polls pointing to a hung parliament, he told reporters Italy should be prepared to deal with instability but should not fear it, noting that it was now common to many European countries.

“We mustn’t dramatize the risk of instability, we are quite inoculated against it,” he said, in reference to Italy’s frequent changes of government, adding that elsewhere in Europe there has been “an Italianisation of political systems”.

All Italy’s main parties are promising to raise the budget deficit and slash taxes despite record high public debt, and immigration is set to be a central theme of the election, with right-wing parties frequently warning of a migrant “invasion”.

The anti-establishment 5-Star Movement leads opinion polls with about 28 percent of the vote, followed by the ruling Democratic Party (PD), of which Gentiloni is a member, on around 23 percent.

However, most seats in parliament are seen going to a conservative alliance made up of Silvio Berlusconi’s Forza Italia (Go Italy!) on around 16 percent and the right-wing Northern League and Brothers of Italy, with 13 and 5 percent respectively.

Speaking at the prime minister’s traditional end of year news conference, Gentiloni appealed to political parties not to spread fear and make unrealistic promises in the “imminent” election campaign.

“I think it is in the interests of the country to have an election campaign that limits as much as possible the spreading of fears and illusions, these are the risks we have before us,” he said.

(Additional reporting by Isla Binnie,; Editing by Alison Williams)

Iraqi Kurdish independence referendum will fuel instability, Turkey says

A Kurdish People's Protection Units (YPG) fighter walks near a wall, which activists said was put up by Turkish authorities, on the Syria-Turkish border in the western countryside of Ras al-Ain, Syria January 29, 2016. REUTERS/Rodi Said

ANKARA (Reuters) – Next month’s referendum on Iraqi Kurdish independence violates Iraq’s constitution and will further destabilize the region, a Turkish government spokesman said on Tuesday.

Iraq’s Kurds have said they will go ahead with the referendum on independence on Sept. 25 despite concerns from Iraq’s neighbors who have Kurdish minorities within their borders, and a U.S. request to postpone it.

“The referendum would contribute to instability in the region,” Turkey’s Deputy Prime Minister and government spokesman Bekir Bozdag told a news conference after a cabinet meeting in Ankara, adding the decision to go ahead with the vote “violates the constitution of Iraq”.

Turkey’s outlawed Kurdistan Workers Party (PKK), designated a terrorist organization by Ankara, the European Union and United States, has waged a three-decade insurgency against the Turkish state.

In Syria, where President Bashar al-Assad’s government has lost control of large parts of the country, Kurdish YPG fighters hold territory along the border with Turkey and the Kurdish-led administration plans local elections next month – a move Damascus has rejected as a “joke”.

The U.S. State Department has said it is concerned that the referendum in northern Iraq will distract from “more urgent priorities” such as the defeat of Islamic State militants.

Turkish Energy Minister Berat Albayrak said last week the referendum would harm energy cooperation with northern Iraq’s Kurdish regional authority, which pumps hundreds of thousands of barrels of oil a day to Turkey’s Ceyhan export terminal.

(Reporting by Dirimcan Barut; Editing by Dominic Evans and Janet Lawrence)