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Power play within Italy's Democratic Party may end with Renzi replacing Letta as premier

Italian Premier Enrico Letta is battling to stay in office amid a power play by supporters of the dynamic head of his party, Matteo Renzi, that has convulsed Italy's fragile political stability.

Letta said he would outline his government agenda for 2014 on Wednesday, under pressure from within his own party to reboot the stalled economy and enact promised reforms.

But speculation mounted Wednesday that the Democratic Party might replace Letta with Renzi at the helm of the government, resulting in the third Democratic premier in a year. A party meeting is planned for Thursday.

Italian President Giorgio Napolitano, who appointed Letta premier after February 2013 elections failed to produce an executive that could govern, has said the ball is in the Democrats' court to decide how to move forward.