Berlusconi Resigns

Silvio Berlusconi today resigned as Italian prime minister four weeks after losing the country's general election to a centre-left coalition.

Mr Berlusconi had contested the results of the poll and vowed to challenge the outcome in court.

But he finally conceded the election this afternoon when he handed his resignation to Italy's president, Carlo Azeglio Ciampi, clearing the way for a new government led by Romano Prodi.

The resignation was confirmed in a statement from the president's office after a half-hour meeting at the presidential palace.

Mr Berlusconi, who announced his decision to stand down at a cabinet meeting this morning, made no comment to reporters as he left Mr Ciampi's office.

His resignation was the next formal step after the election of speakers for Italy's new parliament over the weekend.

It will now be up to Mr Ciampi to decide whether to sanction the formation of a new government this week or wait until parliament elects a new head of state later this month.

Mr Ciampi, whose mandate expires on May 18, has always said his successor should oversee the transition, but there has been speculation that he may do so himself.

He is understood to be keen to end Italy's political limbo and to send a signal of stability to world financial markets.

If Mr Ciampi does change his mind, Italy could have a new government by the end of this week.

Mr Prodi welcomed the move. "Democracy goes on, sometimes slowly, but it does," he said. "It is a very important step ... I hope the political vacuum doesn't go on for too long."

Mr Berlusconi is expected to continue as caretaker prime minister until the new government is installed.

Mr Prodi's coalition won the election on April 9 and 10 by the smallest margin in modern Italian political history.

Mr Berlusconi claimed there had been widespread irregularities during the poll but Italy's authorities upheld the vote, saying it was up to the new government to deal with any complaints.

The conservative leader, elected in 2001, was the longest-serving leader of his country since the second world war.