- January: The Berlusconi government falls. Consultations between the Quirinale, the parties and the social organisations. The first exploratory mandate entrusted to Berlusconi fails. Crowd in front of Montecitorio {seat of Lower House of Parliament}. Egg throwing at Palazzo Grazioli {Rome residence of Silvio Berlusconi}. Public Debt rises above 1900 billion. The EU asks Italy for an additional measure amounting to 30 billion, on top of the Finance Act.

- February: Second mandate entrusted to Draghi. Unemployment figures rise thanks to the end of the fund for laid off workers involving tens of thousands of workers. The Confindustria declares that growth in 2011 could be zero. This evaluation is confirmed by the IMF and the EU. Spontaneous strikes in the public administration. Draghi, in his first speech in Parliament as President of the Council, having obtained a bipartisan vote of confidence announces that sacrifices are inevitable and that Italy is on the brink of economic collapse.

- March: Fall in tax receipts and a new sharp rise in the Public Debt to 1,940 billion euro. The Debt/GDP ratio rises above the threshold of 120%. Interest given by the Treasury on Italian State bonds reaches that of Spain. There’s the hypothesis of a bridging loan to Italy from the EU and the IMF amounting to 200 billion with non-negotiable conditions in relation to the reduction of the Debt, of pensions and of the number of people employed in the public administration.

- April: Social unrest throughout Italy. Berlusconi fails to return from a trip to Antigua. On live TV, Draghi announces the 5-year block of State bonds for Italian bondholders, to whom interest is still to be paid. The period for freezing any increases in the public sector is extended for a further two years. There’s a decision on the abolition of the provinces and the integration of personnel into the regions as well as about the reintroduction of ICI {Local property tax} on the first house.

- May: Income from taxes drops by 6%. Zero growth of GDP could become negative. Broadcasting across all TV channels, Napolitano exhorts the nation to have social cohesion and national solidarity. Tension resulting from the failure to sell some State bonds.

- June: Speculation regarding Italy’s imminent exit from the Euro. Draghi sets in train exceptional measures to restore the health of public finances. Withdrawal of ten per thousand from current accounts, maximum value for pensions set at 2500 euro and raising of the pension age by two years.

- July: Italian banks are beset by the property bubble. Collapse of bank shares and the shares of real estate companies quoted on the Stock Exchange. Collapse of some of the companies in the sector. Occupation of unrented buildings in many Italian cities. Emergence of unsuspected connections between organised crime, politicians and entrepreneurs in the real estate market sector. Draghi promulgates a law to discourage the outsourcing of Italian companies abroad.

- August: Flight of capital from Italy and increase in unemployment especially in the South. Spontaneous uprising for lack of basic necessities in Campania and in Sicily. Dell'Utri found guilty even by the Court of Cassation and is imprisoned. The PDL dissolves spontaneously. A new electoral law starts to work its way through Parliament. Beppe Grillo presents to the Senate the popular initiative law “Clean up Parliament”

- September: The Public Debt goes over 2,000 billion. Plan to cut a third of the Public Administration employees in 5 years. Reduction in consumption. For now, Italy avoids leaving the Euro. Increase in the gap between the return on Italian and German bonds.

- October: General Strike paralyses the country for two days. Trades Unions are contested. Schifani resigns as President of the Senate for personal reasons. The new President of the Senate belongs to the PD so as to reinforce the united national technical government. The hypothesis of elections in 2012 seems unlikely given the fear of default.

- November: Italy is on its last legs, resulting from unemployment and the increase in inflation. Draghi sets up a massive programme to recover taxes that have been evaded, amounting to 50 billion a year based on actual ownership. Public financing to parties is cut by 50% and to newspapers by 100%.

- December: A wealth tax and an increase in the tax rate on deposits and on current accounts are the final action of the government in 2011. Italy ends the year with a forecast of 1% growth in GDP in 2012 and an increase of 22% in unemployment. Berlusconi never returned from Antigua where among others, he has been joined by Bondi, Cicchitto, Fede, Gasparri and Letta for reasons of personal safety.

Berluscoma 2010 (DVD) The sunset of the Second Republic as told by Marco Travaglio Buy your copy today.