Silvio Berlusconi has resigned as prime minister of Italy, thus paving the way for Romano Prodi to form a new government of his centre-left coalition. The former EU executive chief, who was narrowly defeated at last month's election, handed in his notice to President Carlo Azeglio Ciampi. However, Ciampi has asked him to stay on as caretaker prime minister, BBC reported. Himself leaving office this month, President Ciampi has wanted his successor to oversee the change of government. But he is under growing political pressure to appoint Romani Prodi this week. Earlier on Tuesday Ciampi, Berlusconi and Prodi all attended a state funeral in Rome for three Italian soldiers killed by a bomb in Iraq last Thursday.

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