Not good news. Berlusconi has been an ardent supporter and a strong ally to the Bush Administration.
ROME - Italian Premier Silvio Berlusconi will resign and form a new government to strengthen his struggling conservative coalition, the foreign minister said Monday.
Berlusconi had been under pressure to resign since the coalition suffered a crushing defeat in a regional vote earlier this month. Last week, a small centrist party headed by Deputy Premier Marco Follini pulled its ministers out of the Cabinet and demanded that Berlusconi form a fresh government with a new platform.
Berlusconi has been weakened but this is by no means insurmountable for him.