Former PM’s blessing paves way for the League and Five Star Movement to form a government

This article is more than 2 years old

This article is more than 2 years old

Italy’s scandal-tainted former prime minister Silvio Berlusconi has given his blessing for his coalition partner, the League, to attempt to form a government with the anti-establishment Five Star Movement (M5S).

The 81-year-old’s presence had been the sticking point preventing the two parties from breaking a political deadlock that followed inconclusive national elections in March.

Quick guide Parties in the Italian election Show Hide Forza Italia Led by four-time prime minister Silvio Berlusconi (although he himself cannot stand owing to a tax fraud conviction). Wants to introduce a “parallel currency” for domestic use, keeping the euro for international trade. Other policies include: a single “flat rate” income tax for companies and individuals; abolishing housing, inheritance and road tax; doubling the minimum pension; introducing a minimum income of €1,000 a month for all; blocking new immigrant arrivals. Northern League Led by Matteo Salvini. Promises to introduce a parallel currency and a flat tax for all at 15%, as well as allowing earlier retirement, repatriating 100,000 illegal immigrants a year and reopening Italy’s brothels. Brothers of Italy Led by Giorgia Meloni. A southern equivalent of the Northern League with neo-fascist roots; policies broadly similar. Five Star Movement Led by Luigi Di Maio. Proposes a minimum monthly income of €780; raising the budget deficit; repealing 400 “useless” laws, including labour and pension reforms to allow earlier retirement and make firing harder; raising taxes on energy companies; improving relations with Russia.

Democratic party Led by Matteo Renzi. Proposes an increase in minimum wage; negotiating to abolish the EU’s fiscal compact (which imposes stiff budget cuts on high-debt countries); raising the budget deficit to 3% of GDP so as to cut taxes and increase investment. Free and Equal Led by Piero Grasso. New party uniting smaller leftwing groups. Proposes to repeal labour and pension reforms and boost public spending. Photograph: Simona Granati - Corbis/Corbis News

But in a move which could finally bring an end to the billionaire’s three-decade long political career, Berlusconi announced on Wednesday night that he would not veto the populist administration or impose any pre-conditions.

The four-time ex-premier went on to say that his Forza Italia party would not support a parliamentary vote of confidence for the administration and stressed that the centre-right coalition – which won the biggest share of the 4 March vote – would stick together.

“A League-M5S government will not mark the end of the centre-right alliance,” he said. “We will collaborate in regional and local elections, so it remains a shared story, and with shared commitment to our voters.”

Earlier on Wednesday, president Sergio Mattarella had set a 24-hour deadline for Matteo Salvini, the leader of the League, and MS5 leader Luigi Di Maio to try to clinch a deal. If the pair fail to reach an agreement by Thursday, then the president will be forced to appoint a caretaker government.

Italy's Five Star Movement rejects Berlusconi on eve of formal talks Read more

Di Maio – whose party emerged as the largest single party in the election – insisted that the only way the parties could work together would be if Salvini dropped Berlusconi, who Di Maio sees as the potent symbol of the corrupt politics his party has railed against.

Berlusconi’s late decision could have been swayed by fears that Forza Italia could lose traction in the event of a new snap election. The League emerged as the surprise winner in the centre-right alliance in March while its support in opinion polls has since grown from 18% to around 22%.

“Some important personalities within the party would be scared about the prospect of new elections. They have the impression that Forza Italia could be finished off,” said Massimiliano Panarari, a politics professor at the Guido Carli Free International University for Social Studies in Rome.

“It’s also further evidence that the aggressive political effect and expansion power in public opinion of Berlusconi is finished. Now I think we can really say that the Berlusconi era is over.”