Italy president urges speedy electoral reform

ROME, July 30 (Reuters) - Italian President Giorgio

Napolitano told political parties on Monday to make faster

progress to reform the electoral law and expressed concern over

speculation that there may be an early general election.

Napolitano said in a statement that the parties supporting

Mario Monti's government had neglected an appeal he made early

this month to agree new voting rules, saying their positions had

instead become "more evasive and polemic".

He said a new law was particularly important to reinforce

Italy's international credibility "at a time of persistent grave

difficulties and challenges". Italy's electoral rules are widely

blamed for failing to produce stable, lasting governments.

Italian benchmark borrowing costs are hovering around 6

percent as the euro zone debt crisis shows no sign of easing and

this week Monti is visiting several European capitals to try to

agree ways to calm markets.

Last week Monti - a "technocrat" drafted in after Silvio

Berlusconi resigned from the post last year - urged the parties

to agree on a new electoral law to reassure financial markets of

the stability of a new government after elections scheduled for

spring next year.

All sides say they want to change the current rules,

adopted in 2005, but after weeks of talks, serious disagreements

remain, fuelling market doubt about the capacity of Italy's much

criticised political class to agree significant reforms once

Monti leaves office.

Steadily worsening relations within the right-left ruling

coalition have also led to growing speculation that the

government may soon be brought down and a quick election held in

the autumn, yet Napolitano made clear he would resist this.

He pointed out that he is the only figure who has the

constitutional power to dissolve parliament and called for

"maximum caution and responsibility" from politicians and

commentators in discussions over the future of the government.

(Reporting by Gavin Jones; Editing by Robin Pomeroy)