Berlusconi sworn in

Silvio Berlusconi was sworn in as Prime Minister of Italy yesterday for the third time in his political career after forming one of Italy's most right-wing Cabinets since World War II.

The 71-year-old media tycoon, who won last month's parliamentary election, took his oath of allegiance at the presidential palace along with government ministers whose main challenge will be to revive an economy at risk of recession.

Although Mr Berlusconi has warned Italy it faces tough years ahead and he will have to carry out unpopular reforms, he spoke optimistically before his inauguration. "We're in a honeymoon period," Mr Berlusconi said, adding he intended to pick up from where he left off in 2006, when he narrowly failed to be re-elected after a five-year term. He also served briefly as Prime Minister from 1994 to 1995.

"We have 100 days to avoid disappointing those who put their faith in us, and five years to change and modernise this country," he said.

Mr Berlusconi promises to fight crime, crack down on illegal immigration and clear the mounds of rubbish in Naples.

Another headache will be to rescue the state-controlled airline Alitalia from possible bankruptcy by finding a buyer with deep pockets.