Bush refuses to support Sharon's expansion of settlements in the West Bank in return for withdrawal from Gaza. Khaled Dawoud reports from Washington THE DAY following the death of John Paul II, Italians went to the polls in 13 regions across the country. The results were a clear defeat for the centre-right ruling coalition led by Prime Minister Silvio Berlusconi. While the government's defeat did not come as a complete surprise, the extent of the losses was remarkable as was the decline in popularity of Berlusconi's party Forza Italia. The biggest upset of the elections occurred in the traditionally Catholic and conservative south. The underdog, Nicchi Vendola, who is openly gay and member of the Refounded Communist Party, defeated the incumbent right-wing young president of the Puglia region. In a television interview a few days after his victory, Vendola said that it is telling that he did not try to conceal anything or pretend. "My campaign was open and radical," he said. The advertising agency involved in his campaign, which incidentally won the award for best campaign, resorted to irony in its slogans, using words like "extremist" and "dangerous". Ironically, rather than scare people off, Vendola, always appearing with his trade mark earring, became a symbol for the desire for change. The government's defeat in the Lazio region, which includes Rome, was another significant loss. Outgoing Lazio President Antonio Storace described the results as a "massacre" of the ruling coalition. During the campaign days, he was reported to have said, "If we lose Lazio, Prodi will be the next prime minister." In the end, the centre-left candidate, former journalist Piero Marrazzo would have won even without Alessandra Mussolini's controversy. Mussolini, who split from the centre- right coalition to form her own party won two per cent of the votes, raising concerns that her new party would take votes from the ruling coalition and thus benefit the opposition. Eventually, the public disagreement undoubtedly damaged the coalition's standing. Italy's regional elections have traditionally been a yardstick for measuring a government's popularity ahead of national elections. These will take place in 2006. Back in 2000, the centre-left government lost the regional elections and went on to lose the national elections one year later. Since 2001, the sitting government has lost in local and European elections and now in these regional elections, which have added significance because they are the first elections in which Romano Prodi undisputedly leads the centre-left. "We have shown that we win when we stand united," commented Prodi on the results. The support of the Refounded Communists (RC) under Fausto Bertinotti has been crucial as demonstrated by the Vendola victory. In the 2001 national elections that brought Silvio Berlusconi to power, Bertinotti's party had split from the centre-left coalition. Three years earlier, in 1998, the then government of Prodi fell after the RC withdrew from the coalition and Prodi narrowly lost a vote of confidence. Analysts here have agreed on a number of factors that triggered the government's poor showing in last week's regional elections. The most important factor is dissatisfaction with the economy. Noteworthy, criticism has come from different quarters including industrialists, consumers and trade unions. Trade unions have criticised the government for failure to renew many contracts, mainly in public enterprises and the health sector. Consumers suffer from rising perceived inflation, which is manifested in high prices. Tax reductions introduced by the government have had little effect as public service fees and prices have increased. Big Italian firms such as Fiat and Alitalia are in trouble after thousands of employees were made redundant. Another big Italian firm, Parmalat collapsed two years ago. The pledges made by Berlusconi in 2000, particularly in his highly publicised "contract with Italians" have not materialised. More telling, criticism has come from Confindustria, the country's largest employers association representing biggest companies, which says the government has not done enough to stem declining exports and rising budget deficit. Another factor on the domestic level is devolution controversy. The Northern League Party under Umberto Bossi, which is very active in the rich north, is unpopular in the rest of Italy. The league has always favoured devolution. It is thanks to the league that the government retained the rich regions of Lombardy and Veneto, but ironically, it cost the government the south, which suspects that the government favours the industrial north. Another coalition partner, the National Alliance, has this week called for greater government involvement in the south, drawing attention to divisions within the coalition. Berlusconi's stand on Iraq has been another factor working against the government. The Italian constitution is pacifist and this has remained an important value to most Italian citizens. Anti-war sentiment rose after the kidnapping of journalist Giuliana Sgrena and the bungle of her rescue, which resulted in the death of Italian agent Nicole Calipari at the hands of American soldiers. The ensuing government reaction has been confusing. Conflicting messages on the reduction of the 3,000 Italian contingents in Iraq were embarrassing. Just before the regional elections, the prime minister declared on television that the troops would gradually be withdrawn from Iraq beginning in September. Apparently under pressure from Washington, the announcement was later withdrawn.