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(1 Jan 1996) T/I 10:51:27 STORY: CABINET LOCATION: ROME DATE: 29 DECEMBER 1995 DURATION: 1.05 Dini resigns, prepares for new power struggle Italian Prime Minister Lamberto Dini announced on Friday (29/12) that his government was to resign hours after carrying out its last formal act, approving a 5.28 trillion lira (3.3 billion dollar) supplementary budget to square the accounts for 1995. Dini told his cabinet he would hand in his resignation to President Oscar Luigi Scalfaro on Saturday, after the government had approved the financial package designed to provide new resources and cover a shortfall in tax receipts over the year. The resignation had long been expected, following a pledge by Dini to step down by the end of the year and it will herald a round of discussions aimed at forming a new government. Dini's "interim" administration lasted almost exactly a year. It governed with the support of the centre-left parties, and Dini is expected to aim for more of the same and put himself forward as candidate for a second term as premier during a parliamentary debate due early next month. President Scalfaro is expected to invite Dini to hold a parliamentary debate with a view to forming a new administration that would guarantee continuity during Italy's six-month presidency of the European Union, which starts on Monday (1/1).The debate is expected to begin on Wednesday or Thursday, immediately after the holiday break and the outcome is far from certain. Most observers believe Dini will agree to form a new government, while the right-wing alliance of former prime minister Silvio Berlusconi is divided, with some members favouring a new majority. Scalfaro, who alone has the constitutional power to call early elections, is opposed to dissolving parliament while Italy holds the EU presidency. SHOWS: (ROME, 29/12) Foreign Minister Susanna Agnelli arriving. Health Minister Elio Corcione arriving. CA press. Interior Minister Corcione arriving. Budget Minister Reiner Masera arriving. INT cabinet presser. CU Lamberto Dini saying the government will present its resignation as his programme is over. Tomorrow he will hand his resignation to President Scalfaro. PAN journalists to Dini on platform. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: / ap_archive Facebook: / aparchives Instagram: / apnews You can license this story through AP Archive: http://www.aparchive.com/metadata/you...