Italian ex-PM Silvio Berlusconi to star in Jailhouse Rock (plus threatens to bring down government)

After years of court cases, legal argument and allegations, the law finally caught up Silvio Berlusconi today when he was convicted in a criminal court and sentenced to four years in prison – later cut to one year – after prosecutors proved the billionaire ex-premier was guilty of a multi-million euro tax fraud.

Italian ex-PM Silvio Berlusconi has threatened to bring down the government of technocrats led by Mario Monti.

...Berlusconi said the cabinet was leading Italy into a "spiral of recession" and that his centre-right PDL party would decide in the coming days whether it would end its support.

It is the largest party in parliament and the move could trigger early polls.

The party of former Italian PM Silvio Berlusconi has abstained from confidence votes in parliament.

Prime Minister Mario Monti's government won votes in both houses, but the move by Mr Berlusconi's party has prompted warnings of a political crisis

Markets reacted nervously to the fresh political tension, with the Milan stock market dipping and the difference in premiums demanded by investors to buy Italian rather than German 10-year bonds widening.

Mr Berlusconi, 76, appeared on Wednesday to be rowing back on statements that he would not run in 2013.

"I am being assailed by requests to return to the field as soon as possible," he said after a meeting of party leaders.

"Italy today is on the edge of a cliff. I cannot allow this," he said, claiming that the situation now was "far worse than when I left office last year".

Prime minister Mario Monti is to quit after losing key support from the scandal-hit premier he replaced – Silvio Berlusconi.

He said he ‘could not continue’ with the country’s austerity reforms without backing from Mr Berlusconi’s majority People of Freedom party, which claimed the debt-laden country was worse off than ever.

The 69-year-old will resign once parliament passes its tough budget bill by the end of the month, sparking elections as early as February.

Mr Berlusconi, 76, also aimed for a dramatic comeback by announcing he would run for a fourth term.

Italy's former Prime Minister Silvio Berlusconi has launched a pre-election attack on his successor, Mario Monti, saying the country is now worse off.

He accused Mr Monti of following policies which benefited Berlin, saying Germany had lowered its own borrowing costs at the expense of other states

Mr Berlusconi dismissed news on Tuesday that the spread - the differential between Italian and benchmark German bonds, a closely watched measure of investor unease - had widened further.

"What do we care about the spread?" he told Canale 5 television, part of his own media empire.

"The spread is a trick and an invention with which they tried to bring down the majority that ruled the country," he said, referring to his last government, which collapsed just over a year ago when he resigned amid panic on the markets.

Italy's former leader, Silvio Berlusconi, will not return as prime minister even if his party wins next month's election, an ally has stated.

Roberto Maroni said it was explicitly ruled out by an electoral pact between his Northern League party and Mr Berlusconi's People of Freedom (PDL).

The two parties are hoping to form a centre-right government, but have not named a candidate for prime minister.

Mr Berlusconi said he might take the role of finance minister.

However, some observers found it difficult to believe that Mr Berlusconi would be happy serving another leader.

"If Berlusconi were to win, then he would try to grab the premiership," James Walston, a political science professor at the American University in Rome, told Reuters.

A survey published on Sunday suggested the PDL and Northern League would win 28% of the vote, with the centre-left about 10 points ahead, and a centrist bloc backing Mario Monti taking about 15%.

The Northern League opposes immigration and wants greater fiscal autonomy for northern Italy.

LEtranger said:

An appeals court in Italy has upheld the conviction for tax fraud of former Prime Minister Silvio Berlusconi.

The court also reinstated a four-year prison sentence and five-year ban from public office he was handed in October.

Mr Berlusconi was convicted of artificially inflating prices of film distribution rights bought by his company, Mediaset, to avoid taxes.

He is now expected to appeal against Wednesday's ruling at Italy's highest court, the Court of Cassation.

In March, Mr Berlusconi was sentenced to a year in jail after being convicted of arranging for a police wiretap concerning a political rival to be leaked and published in a newspaper run by his brother. He denied the charges and is expected to appeal