“I LOVE Italy, I fly Alitalia,” was the slogan Italian Prime Minister Silvio Berlusconi coined after his re-election. Months later, a patriotic rescue bid for the airline has failed and he faces the prospect of liquidating a symbol of national pride, dismissing 19,000 workers and Alitalia's flying slots being taken by foreign firms. Berlusconi is riding high in opinion polls but the failure of an important plank in his election campaign could undermine that, especially because of his role in undermining a previous offer for the airline by Air France-KLM. “The government played up their solution (for Alitalia) in the election campaign, so they certainly can't escape the problem now,” said Rome resident Andrea Ficaria. Berlusconi had made saving Alitalia one of his first two priorities as prime minister, along with solving the Naples rubbish crisis – which he achieved in July. Winning wide support in Italy – and criticism from civil rights campaigners – for firm action against crime and illegal immigrants, Berlusconi's popularity rating rose to 60 percent. Using his formidable contacts, the media mogul persuaded 16 companies to chip in 1 billion euros to relaunch Alitalia under “Plan Phoenix”, which came tantalizingly close to success. But the plan collapsed this week when some trade unions – including pilots – refused to accept job losses on the table. It will now probably be made bankrupt and its planes grounded. “Italy's airline market is very attractive and will probably end up with a foreign company, which will be interested in the market and not in serving the country,” said Gian Maria Gros Pietro, chairman of one firm in the failed rescue consortium. First defeat La Stampa newspaper called it “the first defeat for the Berlusconi government and a victory – we'll see how much of one – for the opposition and some unions ... But above all it is a defeat for the country.” Saving Alitalia from the liquidators was never going to be easy. It has not turned a profit since 1999 and its unions are notoriously combative and rarely agree even among themselves. As the blame-game began, one union which favoured the deal accused others of playing “Russian roulette” while Berlusconi's ministers tried to pin the blame on the centre-left opposition, which it said manipulated its trade union allies. “We don't have the option of using the unions, unlike you,” Welfare Minister Maurizio Sacconi told senior Democratic Party politician Piero Fassino in a TV debate show. Berlusconi could still find some face-saving solution before aviation authorities decide on Monday about grounding Alitalia. Papers speculated he could go as far as re-nationalising it. But ministers categorically ruled that out, especially since Italy has already been disciplined by the European Commission for a 300 million euro emergency government loan to the airline. “The European Union doesn't allow it and we don't want it,” said Sacconi. La Republica newspaper, which always takes a dim view of the Berlusconi government, said misguided patriotism and the Italian tradition of business currying favour with politicians had got in the way of hard-headed business. “We should replace heroism with realism, and ‘Italianness' with Europe,” wrote editor Ezio Mauro on the front page. – Reuters __
