Silvio Berlusconi to run for office again

The People of Freedom (PDL) party has cancelled its leadership primary and a senior figure said  Berlusconi would run for PM again.

Earlier on Thursday the party abstained from confidence votes in parliament.

Prime Minister Mario Monti's government won votes in both houses, but the move plunged Italy into uncertainty.

Berlusconi resigned in 2011 over Italy's economic troubles and was convicted of tax fraud in October of this year.

Despite this, the PDL's Secretary General Angelino Alfano was quoted in Italian media on Thursday as saying the 76-year-old would run again.

 Berlusconi himself also said on Wednesday that he was being "assailed by requests" to return to politics.

He has already served as Italy's prime minister for three separate terms and built up what is believed to be a vast personal fortune from his business empire.

Economic reforms

The PDL's decision to walk out of a vote of confidence is being seen as an effort by the party to distance itself from the policies of Monti's government ahead of next year's election, expected to be held in March.

Monti replaced Berlusconi as prime minster just over a year ago, and launched a programme of reforms aimed at pulling Italy out of economic crisis.

President Giorgio Napolitano said he wanted to avoid a "turbulent" end to Monti's technocratic government.

For months Berlusconi has kept Italy guessing. At times he has appeared to be on the verge of making an attempt to return to power, but then backed off.

Berlusconi still has not made any formal, public declaration. But it now seems all but certain that he will indeed lead his People of Freedom party into the election.

There is so little doubt of this that the faction has cancelled its leadership primary.

And manoeuvring ahead of the election has stoked the political tension in Rome.

Berlusconi's party has moved to distance itself from the technocrat government's economic austerity programme.

The faction abstained from two parliamentary votes. And this is serious because the administration relies partly for its support on Berlusconi's party.

So suddenly Prime Minister Monti's government looks very much less stable.

But whether or not an election is called is up to Italy's head of state, President Giorgio Napolitano. And he clearly wants Monti's administration to be allowed to complete its full term in an orderly fashion.

Fabrizio Cicchitto, the leader of the centre-right People of Freedom (PDL) in the lower house, said the party abstained from the vote "to show our strongly critical view of their economic policies".

But he later indicated that they would not attempt to bring down the government.

"We will do our duty to the utmost to... allow the chamber to operate," he was quoted as saying by Reuters news agency.

After the Senate vote, the centre-left raised the prospect of elections being called before the expected date in March 2013.

Recent opinion polls suggest that the ruling party currently has a comfortable lead over the PDL.

After his latest trial in October,  Berlusconi said he "felt a duty to remain in politics".

Supporters of  Berlusconi held a banner in Rome on Wednesday reading "Silvio, Italy Believes in You"

He later said he would not run for PM again, but appeared to row back from that position on Wednesday.

"I am being assailed by requests to return to the field as soon as possible," he said after a meeting of party leaders.

"Italy today is on the edge of a cliff. I cannot allow this," he said, claiming that the situation now was "far worse than when I left office last year".

His party later said it had called off a primary that was going to be held to decide who would lead it into a general election in the spring. According to the party, Berlusconi will head its list of candidates and lead the party into the election.

In response, economic development minister Corrado Passera said it would not be good for Italy's image abroad "to go back".

Monti defended the government's record on Thursday, saying it had largely succeeded in putting the country in a safe position and "preventing Italy from causing new fires in the Eurozone".