Q&A: The future for Berlusconi

CNN Rome bureau chief Alessio Vinci examines the task ahead for Italy's new Prime Minister Silvio Berlusconi.

Now they have a new government, what is the mood among Italians?

Italians are happy to see that the long political campaign is over. The business community, meanwhile, hopes that Berlusconi's promises of tax cuts will soon materialise, but many already know it will take some time.

What are the main priorities of Berlusconi's government?

Berlusconi made many promises during his political campaign, saying top priorities included cutting red tape in Italy's notably bureaucratic government, a series of construction projects, the creation of 1.5 million jobs and economic reforms aimed at reducing taxes on corporate profits.

All this, Berlusconi hopes, will allow him to reduce taxes gradually also to private citizens. Berlusconi will also attempt to reform Italy's constitution and prepare the groundwork for a more efficient administration.

The opposition is trying to press him on his potential conflicts of interest (he owns a $12 billion empire which includes three private television stations, insurance and publishing companies as well as financial and real estate services). Berlusconi promised he would solve the issue within the first 100 days in power, and some of his fiercest critics are already counting.

Berlusconi’s last stint as prime minister, in 1994, lasted just seven months. Does this coalition promise more stable government?

This government will be more stable than the one in 1994 because of many reasons. Today Berlusconi is a lot wiser politically than when he entered politics, only a few months before winning the elections, and appointed as ministers people who were more his friends than skilled politicians.

Among those re-appointed ministers are Antonio Martino, then foreign minister, will head the defence ministry, while Giulio Tremonti will this time be the sole person responsible for the economy since the finance and treasury ministries have been merged into one department for economics.

On top of that, in 1994 Berlusconi did not have a majority in the Senate, and in the lower house of parliament he had to rely on votes from the Northern League of Umberto Bossi, who pulled the plug on him and was the cause of the collapse of Berlusconi's first government.

Today Berlusconi can count on a comfortable majority in both houses of parliament, and Bossi is no longer the kingmaker.

Italy too is very different than in 1994, when the old political establishment which ruled the country since the end of World War II collapsed after investigating judges uncovered large corruption and illegal financial dealings among politicians and political parties.

Berlusconi won in 1994 because he was perceived by many voters as the alternative to the old system. Today he won, because people really believe he can deliver on promises he made during the campaign.

How will Berlusconi’s government handle further European integration and expansion? Will Italy’s commitment to the euro single currency waver?

Berlusconi will largely maintain Italy's foreign policy untouched, in the sense that he is a committed pro-European. He has chosen Renato Ruggiero as foreign minister. Ruggiero is not a politician, but a well-respected former diplomat and former head of the World Trade Organization. He enjoys incredible respect among Europe's leaders, and his presence in the cabinet is a guarantee that Berlusconi will not take Italy off its European course.

We will witness a closer co-operation with the United States, now lead by a conservative president, with whom Berlusconi says he wants to have a "special relationship." What many observers believe is that Berlusconi will try to find a role for himself in Europe as a mediator between President Bush's US and a Europe still mainly led by centre-left governments.

Berlusconi is on record as saying he backs US plans for a missile defence system, as well as leaving a door open to more discussion on the pro-environment Kyoto agreement (for the reduction of greenhouse-gas emissions), which most of Europe wants to ratify but the Bush administration opposes.

As far as expansion we will have to wait until the EU summit in Sweden at the end of this week to hear Berlusconi's official position.

How forceful a role are Berlusconi’s main conservative allies -- Gianfranco Fini of the National Alliance and Umberto Bossi of the Northern League -- likely to play in the government?

Fini is the deputy prime minister, and Bossi is the minister in charge of reforms, including giving greater autonomy to Italy's regions. Their parties also hold key government positions such as the justice, agriculture, environment and labour ministries.

Both Fini and Bossi will play major roles in the government, and their satisfaction will be key to Berlusconi's success. If, for example, Bossi resigned as minister, even if he no longer controls Berlusconi's majority in parliament, his departure would be perceived as a serious blow to Berlusconi. But Bossi needs Berlusconi a lot more than Berlusconi needs Bossi.

Berlusconi’s first major opportunity to showcase his government to the world community will come at the G8 summit in Genoa from July 20-22. What might we expect at the summit? Italy is late in organising the summit, and there is a lot of concern regarding security, as hundreds of thousands of anti-globalisation demonstrators plan to converge on Genoa during the summit. The situation is so serious that security will be provided not just by the police, but also by the army.

Berlusconi will briefly meet Bush in Brussels this week at the NATO summit, and then again in Sweden at the EU Summit.

In his campaign, Berlusconi promised a "new era" for Italians. Can he unite the industrial north with the south?

He will if his investment projects and his economic reforms have a quick impact in the south. Many governments in the past have failed to do that, although many areas in southern Italy today look a lot better than five or 10 years ago. But there is still a lot to do. Berlusconi will have to concentrate especially on improving the infrastructure in the south, roads and communications. After that private investments may follow, both domestic and international.