Back in the game

The possible return of Silvio Berlusconi to the political stage spooked rival politicians and investors, but it would be foolish to write the wily fox off yet, says Barry Moody

HE IS on trial for having sex with an underage prostitute, is one of the most divisive figures in Italy and was chased from office eight months ago after steering his country to the brink of financial catastrophe.

Now Silvio Berlusconi — who denies the sex trial charges involving Moroccan teenager Karima el-Mahroug — is back, unchastened, and apparently planning to stand for prime minister in an election early next year. His move has added a new element of instability into Italy’s volatile politics, one of the key factors cited by ratings agency Moody’s in downgrading the country’s sovereign debt by two notches last week and warning it could cut further.