Silvio Berlusconi has formally resigned as prime minister of Italy, thus paving the way for Romano Prodi to form a new government of the centre-left. The centre-right leader, who was narrowly defeated at last month’s election, handed in his notice to President Carlo Azeglio Ciampi. However, Mr Ciampi has asked him to stay on as caretaker prime minister. The president is himself leaving office this month and wants his successor to oversee the change of government. Full Story