MILAN | Thu Apr 5, 2012 11:28am EDT
MILAN (Reuters) - Umberto Bossi, firebrand leader of Italy's opposition Northern League party, resigned on Thursday following allegations that taxpayers' money had been used to pay for renovations at his villa and holidays for his children, a party source said.
The move, at a meeting of the League's federal council in Milan, is likely to destabilize the populist, anti-immigration party, weakening one of the main political forces opposing Prime Minister Mario Monti's austerity program in parliament.
Earlier this week, prosecutors placed the party's treasurer and two other officials under investigation over accusations of fraud and illegal party financing.
Bossi is not under investigation and has denied ever using the party's money for his or his family's benefit.
He had been at the helm of the party since he founded it in the late 1980s.
His resignation could pave the way to emergence of former Interior Minister Roberto Maroni as a new leader.
No official comment from the party was immediately available.
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