Italy's new government will be up and running within two weeks, Premier-elect Silvio Berlusconi said on Tuesday.
Speaking to journalists on the sidelines of the official opening of Italy's 16th postwar legislature, Berlusconi said: ''I believe my government will be sworn in on the 9th or 10th of May''.
The 71-year-old billionaire media mogul, who won a third term as premier after beating his centre-left adversary Walter Veltroni in the April 13-14 general election, went on to stress that tough times were ahead for Italy
''We have an enormous responsibility. We feel honoured but also worried because the situation is difficult - the most difficult since the end of the war,'' Berlusconi said.
''We will do everything possible to set Italy back on the path of development and end the decline caused by bad government,'' said the centre-right chief, whose previous government was in power from 2001-2006.
Italy is teetering on the brink of recession, with GDP growth put at only 0.3% this year by the International Monetary Fund.
Strapped by the third biggest debt mountain in the world, the country is lagging behind its euro-zone partners.
Consumer spending has fallen as Italians struggle with some of the lowest wages in Europe and a hike in inflation which has included food and petrol prices.
The near-bankruptcy of Italian flag carrier Alitalia, an ongoing trash crisis in Naples and a scare over dioxin-tainted mozzarella have also knocked morale.
Political observers say Berlusconi's unexpectedly strong election win, which left him with a solid majority in both chambers of parliament, should help him push through much-needed reforms.
But critics point out that Berlusconi failed to deliver on his promises during his 2001-2006 government when he also enjoyed a solid majority.
His economy minister will once again be Giulio Tremonti. During Tremonti's previous term in office, Italy's public accounts declined sharply while deregulation and privatisations came to a virtual halt.
Berlusconi, who owns the three-channel private TV network Mediaset, also remains under fire over the conflict between his vast business interests and political powers.
He is still beset by legal woes and is currently a defendant in two corruption trials in Milan.
He denies wrongdoing, claiming that left-leaning magistrates are persecuting him for political reasons.
GIANNI LETTA ''GIFT FROM GOD''.
Berlusconi remained tight-lipped on Tuesday regarding the make-up of his new government but confirmed that his long-standing business and political aide Gianni Letta would return to the role of cabinet secretary.
''At the moment, the only non-perishable person is Gianni Letta... There is only one man who is indispensable at the premier's office and that's not Silvio Berlusconi but Gianni Letta, who will be cabinet secretary with all the consequent powers,'' he said.
''Letta is a gift from God to all Italians,'' Berlusconi added.
Letta, 73, worked as a journalist before joining Berlusconi's family holding company Fininvest in May 1987.
He oversaw the group's publishing and broadcasting activities and became a close friend of Berlusconi.
When Berlusconi won the 1994 election, Letta gave up his Fininvest job to become cabinet secretary, a post he returned to when the centre-right tycoon swept back to power in 2001.
Letta enjoys a reputation as a subtle and respected behind-the-scenes mediator.
European Commissioner for Justice and Security Franco Frattini is expected to become Italy's next foreign minister.
Frattini has taken unpaid leave from his prestigious European Commission job and on Tuesday resigned his House seat, an act which appeared to confirm that he was heading for a government post.
Meanwhile, the first day of the new parliament began with the election of the chambers' speakers.
Renato Schifani, a former Senate whip for Berlusconi's Forza Italia party, was elected Senate speaker while former foreign minister Gianfrano Fini was set to be elected House speaker.
Fini is the head of the right-wing National Alliance (AN) which recently joined forces with Forza Italia to form the new People of Freedom party (PDL) headed by Berlusconi.
The Senate and House will now proceed in setting up their committees and electing their respective chairmen.
By tradition, the opposition - in this legislature the center left headed by Veltroni - will be offered the chairs of the so-called watchdog committees and commissions.
These include the panel which oversees elections, the one which decides whether or not MPs can be prosecuted, the committee which oversees the secret services and the commission which is responsible for state broadcaster RAI.
After the May Day weekend holiday break, President Giorgio Napolitano is expected to ask Berlusconi to form a new government.
