Berlusconi merges Italian parties, promises reform

Prime Minister Silvio Berlusconi yesterday closed a three-day congress merging Italy's main conservative parties and promised policy changes including steps to give more power to the Prime Minister.

Other changes would streamline parliamentary procedures, devolve powers to the regions and cut taxes.

Mr Berlusconi told supporters that the People of Liberty party - the union of the Forza Italia movement he founded 15 years ago with the right-wing National Alliance (AN) - already commanded 44 per cent of the vote and would get stronger.

"We aim to reach 51 per cent, a great party like ours must never be satisfied," the 72-year-old media tycoon said in his closing address amid a flag-waving crescendo of applause in a rock concert atmosphere.

"There are still so many Italians who can join us to make Italy truly modern, free and European," said Mr Berlusconi, who is leading his fourth government and has ruled Italy for seven of the last 15 years.

The smaller AN was a distant heir to Benito Mussolini's fascist party which, under the leadership of former Foreign Minister Gianfranco Fini, has progressively moved towards the centre over the last two decades.

The two parties already ran under the same Party of Freedom banner at the 2008 election which returned Mr Berlusconi to power and, along with the regionalist Northern League, formed the backbone of the centre-right ruling coalition.