The instability of the Italian government following the tax-fraud conviction of former Prime Minister Silvio Berlusconi threatens to end a lull in the European debt crisis and derail a nascent economic recovery. Berlusconi’s party has rallied around its leader, possibly seeking a presidential pardon and threatening a mass resignation of its deputies in parliament, a move that could bring down the government of Prime Minister Enrico Letta. Letta has told allies that he would quit before being pushed out if support in the chamber dwindles, Italian daily la Repubblica reported on Aug. 3. “If we decide together to do it, ... (full story)