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Italian Cabinet passes first economic measures, formally suspending tax on first homes

ROME - Italy's new cross-party government has adopted its first measures to help the economy. They include suspending a tax on primary residences and allocating funds to extend a short-term layoff scheme. The Cabinet also eliminated stipends for the premier and the Cabinet members beyond their base salary as lawmakers. The government allocated 1 billion euros ($1.28 billion) for the short-term layoff fund, which was about to go bust. The fund helps companies pay the salaries of workers they have laid off due to the crisis.

Berlusconi alleged call-girl testifies for first time

The woman alleged to have had sex for money with Silvio Berlusconi when she was just 17 and he was the prime minister testified in court for the first time on Friday at a trial of three people accused of pimping for the billionaire tycoon. Karima El-Mahroug described "sensual" soirees in a discotheque at Berlusconi's villa that invitees called the "bunga bunga", saying she was paid 2,000 or 3,000 euros ($2,600 or $3,900) a night.

Moroccan woman at centre of Berlusconi sex scandal testifies publicly for first time

MILAN - The Moroccan woman at the centre of a sex scandal involving former Italian Premier Silvio Berlusconi is testifying publicly for the first time. Karima el-Mahroug took the witness stand Friday in the trial of three Berlusconi aides charged with recruiting her and other women for prostitution. They deny the charges. El-Mahroug, known by the nickname Ruby Heart Stealer, has made carefully orchestrated statements to the media since the scandal broke but has never publicly given sworn testimony. Both she and Berlusconi deny having had sex.

AFP 0100 GMT News Advisory

Duty Editor: Mike Patterson Tel: +852 2829 6211 -- TOP STORIES -- + Deadly car bombing hits Libya's Benghazi + US abortion doctor convicted of murder + US, Britain pressure Russia over Syria Libya-unrest,WRAP-update BENGHAZI, Libya A powerful car bomb explodes near a hospital in the Libyan city of Benghazi, killing and wounding dozens and unleashing international condemnation. 700 words 0200 GMT by Ibrahim al-Majbari. Picture. Graphic. Video US-crime-court-abortion,lead

Italian PM warns ministers after Berlusconi rally

A weekend rally by Silvio Berlusconi in northern Italy has heightened tensions in the uneasy new coalition government, with Prime Minister Enrico Letta on Sunday demanding that his ministers stay away from such gatherings. Former prime minister Berlusconi, whose People of Freedom party has joined the grand left-right coalition, told a crowd assembled in a square in the northern town of Brescia on Saturday that he remained loyal to the government.

Italian prosecutors sum up in Berlusconi sex trial

Italian prosecutors presented their final arguments on Monday at the close of Silvio Berlusconi's trial for having sex with an underage prostitute and abuse of office in a legal storm that is shaking the government. The hearing is one of the last in a trial that began two years ago and relates to alleged crimes in 2010 when Berlusconi was still prime minister and revolves around alleged raunchy "bunga bunga" parties at his luxury residence outside Milan.

Italy PM Letta seeks to calm cabinet tensions at Tuscan retreat

By Silvia Ognibene SARTEANO, Italy (Reuters) - Italian Prime Minister Enrico Letta took his ministers to a conference center in a former abbey in Tuscany for a retreat on Sunday to thrash out differences that have already threatened the stability of his fragile coalition. The two-day bonding session near the town of Sarteano was billed by Letta's office as a chance to discuss some of the thorniest policy issues facing the coalition between the main traditional rivals on the left and right of Italian politics.

Prosecutor seeks 6-year jail term for Berlusconi in sex trial

MILAN (Reuters) - An Italian prosecutor is seeking a six-year jail sentence for former Prime Minister Silvio Berlusconi for allegedly having sex with an underage nightclub dancer during notorious 'bunga bunga' parties at his villa outside Milan. The prosecutor also asked for a lifetime ban on holding public office. The 76-year-old billionaire media tycoon and center-right political leader stands accused of having had sex with Karima El Maroug, better known by her stage name 'Ruby the Heartstealer', when she was a minor.

Two decades of courtroom saga for Italy's Berlusconi

For two decades, legal troubles have haunted Italy's former prime minister Silvio Berlusconi, whose conviction for tax fraud linked to his Mediaset business empire was upheld on Wednesday. Berlusconi has never seen the inside of a prison cell, however, showing a knack for getting off the hook and prolonging trials so long that charges eventually expire under the statute of limitations. It is unlikely the 76-year-old will ever go to prison since Italy has lenient sentencing guidelines for over-70s, who are given short prison terms.

Italian court upholds Berlusconi tax fraud sentence

An Italian court on Wednesday upheld a tax fraud conviction for former prime minister Silvio Berlusconi, confirming his sentence of one year in prison and a five-year ban from public office. "The court confirms the sentence against Silvio Berlusconi," a judge in Milan said in a live audio feed broadcast by news channel Sky TG 24. Berlusconi is now expected to appeal the ruling in Italy's highest court, which would suspend the punishment pending a final ruling in the case which revolves around his Mediaset business empire.
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