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The estranged wife of Italian prime minister Silvio Berlusconi wants €43 million a year as a divorce settlement.

Veronica Lario left her husband after he became embroiled in a scandal involving at least one prostitute.

Couples in Italy must be legally separated before divorce can be granted.

The Corriere della Seranewspaper, citing what it said were “informed sources,” said Mr Berlusconi, Italy’s second-richest man, made a counter-offer of €200,000 monthly, and indicated willingness to go up to €300,000 monthly.

Mr Berlusconi (73) is listed by Forbes magazine as the 70th richest person in the world, worth around €4 billion.

Ms Lario, a 52-year-old former actress, said earlier this year she was fed up with his infatuation with young women and was seeking divorce.

The scandal surrounding Mr Berlusconi's private life revolves around a court case in southern Bari concerning the activities of businessman Gianpaolo Tarantini.

Mr Tarantini, who is under house arrest after being charged with drug offences, acknowledges that he helped procure female guests for dinners and parties at Mr Berlusconi's home but says prime minister did not know they were prostitutes.

Mr Berlusconi has denied ever paying for sex.

Ms Lario, Berlusconi’s second wife, married him in 1990. They have three children together, now in their 20s.

Corriere della Serasaid she was seeking a deal that would allow her to maintain the lifestyle she now enjoys.