Silvio Berlusconi’s government failed to win backing for a key law yesterday, but the beleaguered Italian Prime Minister managed a rare victory as Parliament voted to block prosecutors’ request to search his accountant’s home.

Earlier yesterday Mr Berlusconi’s government failed to win backing for a key law yesterday, as the hotly-debated federalism law, which would grant greater tax raising powers to Italian cities, did not manage to pass a crucial committee vote.

The Northern League party, the law’s proponent and Mr Berlusconi’s main ally, had said that it would press for early elections if the law was voted down.

But some of the law’s supporters say it could still be pushed through.

The failure came as the full lower house prepared to vote on a request from Milan prosecutors for permission to raid various offices linked to Mr Berlusconi as part of their inquiry into his alleged dealings with prostitutes. However, the prosecutors’ request to search the Prime Minister’s accountant’s house was voted down.

Details of Mr Berlusconi’s numerous alleged liaisons with young women have helped drive his approval ratings down to 35 per cent, their lowest level ever, and there has been heavy condemnation from the Catholic Church.

Milan magistrates announced their inquiry on January 14 into 74-year-old Mr Berlusconi for abuse of power, hand-picking prostitutes for wild parties and paying to have sex with a disco-dancing underage girl known as Ruby.

Prosecutors submitted more than 200 pages of documents to Parliament in support of their attempts to search the offices of Mr Berlusconi’s trusted sidekick Giuseppe Spinelli, which are considered part of the Prime Minister’s domain and therefore under parliamentary privilege.

Mr Spinelli, who manages the Prime Minister’s personal accounts, is suspected of handling money for Mr Berlusconi’s prostitutes, even unwittingly.

Mr Berlusconi denies paying for sex with Ruby, real name Karima El Mahroug, but details have since emerged of possible alliances with a second underage prostitute.

He risks three years in prison if found guilty of paying minors for sex.

The judges said on Wednesday they are likely to seek a fast-track trial process for Mr Berlusconi early next week for abuse of power, after he told police in Milan in May to free Ruby when she had been picked up for alleged theft.

Mr Berlusconi was also dealt a fresh blow by a top court ruling last month to modify a temporary immunity law that has shielded the Italian leader from impending corruption trials.