Berlusconi launches new strategy for final year

Prime Minister Silvio Berlusconi presented a new cabinet to parliament today in a bid to persuade sceptical Italians he can use…

Prime Minister Silvio Berlusconi presented a new cabinet to parliament today in a bid to persuade sceptical Italians he can use his last year before a general election to boost the flagging economy.

The media tycoon was forced to resign temporarily last week by his own political allies who demanded he show Italians he was serious about addressing their concerns after electors punished his centre-right coalition at regional elections.

Adding to the pressure on the premier, Milan prosecutors announced today they had asked a judge to put Mr Berlusconi on trial again for alleged corruption at broadcaster Mediaset, owned by his family business.

Mr Berlusconi, who created Italy's largest media empire, has stood trial for graft on at least seven previous occasions but has never received a definitive guilty verdict.

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Undaunted by his legal battles, Mr Berlusconi presented parliament with a new team and new strategy, stressing help for industry, families and the poor south. He faces confidence votes tomorrow and Thursday he looks sure to win, but elections in a year that pollsters say he may lose.

In a speech to the Chamber of Deputies, Mr Berlusconi blamed external factors for Italy's weak economy, citing the introduction of the euro for pushing up inflation and its appreciation against the dollar for cutting exports.