Bossi bounces back with three seats in new Berlusconi cabinet

Prime Minister-designate Mr Silvio Berlusconi named his cabinet yesterday for Italy's 59th government since 1945, appointing …

Prime Minister-designate Mr Silvio Berlusconi named his cabinet yesterday for Italy's 59th government since 1945, appointing respected names to key posts while appeasing potentially fractious members of his conservative coalition.

In a short ceremony at Rome's presidential palace, the media tycoon, whose coalition won a general election last month, appointed Mr Renato Ruggiero, former head of the World Trade Organisation, to be foreign minister. Mr Giulio Tremonti, a former finance minister, was named economy minister, a post combining finance and treasury roles.

In a more controversial move, Mr Berlusconi (64) called up the turbulent Mr Umberto Bossi and two other members of his devolutionist Northern League party to the cabinet. Mr Bossi, a demagogue whose party formerly advocated independence for the wealthier northern regions of Italy, was named as minister in charge of devolution and reform issues.

When Mr Berlusconi was last prime minister, for seven months in 1994, it was Mr Bossi (59) who helped bring down the government, withdrawing his support after differences over pension reform.

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To serve as his deputy, Mr Berlusconi selected Mr Gianfranco Fini (50) leader of the formerly neo-fascist National Alliance party. Mr Fini's party has continued to gain support in recent years and has become a core ally of Mr Berlusconi's Forza Italia. Mr Berlusconi himself will be sworn in as prime minister this morning, the presidential palace said. "I'm very satisfied. We have done well. Now we get down to work," he declared as he left the palace after a 10-minute meeting with President Carlo Azeglio Ciampi.

In all, the incoming prime minister named 24 ministers to his cabinet - nine posts for Forza Italia, five for the National Alliance, three each for the Northern League and the two centrist parties and four independents.

While independents were given key portfolios such as foreign affairs, education and health, it was the Northern League which perhaps did best out of the month-long negotiations Berlusconi conducted before yesterday's announcement.

The League's support fell dramatically in the May election, but Mr Bossi's backing was needed for Berlusconi to secure a majority in the upper house of parliament, the Senate. That leverage appeared powerful as League members were given justice and labour as well as Mr Bossi's reform portfolio.

Within his first 100 days, Mr Berlusconi has promised to stimulate Italy's poor economic performance and decide how to resolve the conflict between his $11 billion business fortune and his political interests.

The Berlusconi family holding company has control of nearly all the nation's private TV channels, a publishing company, advertising firm, a financial services conglomerate and the AC Milan football team.

Mr Berlusconi is likely to consign his business empire to a "blind trust", but the opposition has said that might not be enough.