Italy's Berlusconi secures clear majority

15/04/2008 13:10

By Robin Pomeroy and Deepa Babington

ROME (Reuters) - Silvio Berlusconi looked on Tuesday to have secured a clear majority and streamlined parliament to help him push through tough decisions on Italy’s struggling economy in his third term as prime minister.

With almost all votes counted after a two-day election, the 71-year-old media magnate’s election bloc had a comfortable majority in both houses of parliament after seeing off the challenge of centre-left leader Walter Veltroni.

The anti-immigration Northern League party in Berlusconi’s bloc emerged as a surprise winner, and a drubbing for the far left means Italy will not have a communist or a socialist lawmaker in parliament for the first time in recent memory.

Although many Italians are disillusioned with politics and doubt any government can quickly cure the ills of the European Union’s fourth-largest economy, Berlusconi’s strong position should help him win parliament’s backing for difficult reforms.

"Berlusconi’s margin of victory is comfortable, and allows the prime minister to form a stable cabinet," said UniCredit analyst Marco Vallil.

He also said "the strength of the Northern League -- a rather protectionist party -- could pose some problems when it will be time to discuss reforms."

After two years in opposition, .....continued below

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Berlusconi was due to return to Rome from northern Italy on Tuesday, but for procedural reasons is unlikely to be appointed prime minister before May.

"For Berlusconi it’s a double success," wrote Corriere della Sera columnist Massimo Franco. "Not only will he be returning to the prime minister’s office, but the novelty is that the mandate comes after an election campaign in which he did not promise miracles or hint at painless solutions for the economy."

TOUGH TIMES AHEAD

Berlusconi said on Monday he would immediately deal with the fate of loss-making national airline Alitalia, and resolve a crisis that left thousands of tonnes on the streets of Naples.

His campaign pledges included cutting taxes and reducing the big public debt, liberalising the economy and getting tough on crime. But critics say he failed to carry out many of the pledges made when he was last prime minister from 2001-2006.

"The months and years ahead will be difficult and I am preparing a government ready to last five years," Berlusconi told state television in a live phone call on Monday night.

With only votes cast abroad left to count, the results gave Berlusconi a 101-seat majority in the 630-member lower house and an advantage of 41 seats in the Senate, which has 315 elected and seven lifetime senators.

That contrasts with the two-seat Senate majority of the centre-left government under Romano Prodi, who quit in January 20 months into his five-year term.

Milan’s index of leading stocks rose slightly on Tuesday and shares in two companies controlled by Berlusconi - Mediaset and Mondadori -- jumped at the start of trade.

Berlusconi promised the Northern League at least two cabinet seats and is expected to name its Giulio Tremonti as economy minister.

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