Berlusconi confuses Italy by not resigning

ROME - Italian Prime Minister Silvio Berlusconi has said he did not resign during a meeting with the country's president, creating confusion over whether a government crisis was over.

Earlier in the day, government allies said Berlusconi had agreed to demands from a rebel coalition party for a major reshuffle -- a process that would require him to step aside temporarily before presenting the new cabinet to parliament.

After meeting coalition leaders and reportedly agreeing the changes, Berlusconi drove to see President Carlo Azeglio Ciampi, apparently to tender his resignation as required under the Italian constitution before a major cabinet reshuffle.

But after the hour-long meeting, he told reporters he had not resigned and there had been no agreement on a reshuffle -- leaving confusion over whether the crisis, the worst in Berlusconi's four-year tenure, was over.

Talking briefly to reporters before going into Italy's lower house of parliament to meet the speaker of the Chamber, Pier Ferdinando Casini, Berlusconi was in playful mood.

"A surprise? This time it was me who surprised you," he said.

When asked whether there was an agreement on a reshuffle, he answered: "We will see how parliament reacts."

In a statement, Ciampi said Berlusconi should address parliament but did not clarify the situation further.

The government has been on the verge of collapse since the Union of Christian Democrats (UDC) party quit the coalition on Friday demanding major policy changes after the centre-right suffered heavy losses in regional elections.

Ciampi accepted the resignations of the four UDC ministers but Berlusconi left open the possibility that they may not be replaced.

Berlusconi said last week he would call a snap general election, a year ahead of schedule, if the UDC did not agree to return.

- REUTERS