(Image Source: Wikimedia Commons)

BY JIM FLINK

ANCHOR ZACH TOOMBS

He won the battle.  But has he lost the war?

A month after Italian Prime Minister Silvio Berlusconi survived a no confidence vote in his government, new calls for him to step down.

All -- against the backdrop of increased indebtedness, labor unrest and a loss of confidence in the Italian recovery plan.

The Financial Post reports....

“With Italy now firmly at the heart of the eurozone debt crisis, yields on its 10 year, fixed-rate bonds known as BTPs jumped to 6.1% from 5.9 last week, piling pressure on Prime Minister Silvio Berlusconi’s government as it faces fresh criticism over its handling of the economy.”

Just as in other troubled economies like Greece, union leaders have taken to the streets to fight austerity measures.

Euronews reports, they say Berlusconi is blaming them for his own failures.

“Parliament passed Berlusconi’s measures on Wednesday after his EU counterparts insisted he outline how he’d balance Italy’s budget by 2013. One union leader said, these plans make fun of Italians by telling them there’s a problem with pensions and labor laws.  There’s no such thing.”

But Italy finds itself where Greece and Spain have been before.

Under the critical eye of the Eurozone.

The Wall Street Journal notes, Berlusconi thought he had averted the crisis.  But has not.

“The markets have caught Mr. Berlusconi's government flat-footed. After he crowed this past Thursday that he had convinced European Union partners of his economic-policy plans, Italy's bonds have weakened yet again. Some observers see the adverse market moves as evidence of doubt that Mr. Berlusconi … can muster the political will to make good on his promises for an economic overhaul.”

An analyst tells Bloomberg, politicians like Berlusconi are in a bind.

Between appeasing creditors and constituents.

“And the concern is the kind of policy changes the Europeans have asked for, that there just isn’t the political ability for the government to push through without a wider political coalition inside Italy.”

And Berlusconi -- far from building a broader coalition -- seems to have succeeded in alienating his base.

The BBC notes, the chairman of Ferrari is now among those calling for Berlusconi to step down.

“Mr Berlusconi is under pressure to speed up austerity measures amid feeble growth and a huge public debt. He used to enjoy strong support among Italian business leaders but a growing number have begun calling for his resignation.”

The BBC also notes, Italy's public debt stands at 1.8 trillion euros (£1.6tn), equal to 120% of GDP.