Supporters hail Italian premier

Berlusconi is facing mounting political and financial problems

Supporters of Italian Prime Minister Silvio Berlusconi's party, Forza Italia, have held celebrations to mark the 10th anniversary of its formation.

Waving flags and humming the party anthem, thousands listened to Mr Berlusconi give a speech praising the party's contribution to democracy.

He condemned his political enemies and outlined his vision of a freer, wealthier and more competitive Italy.

The celebrations come as Mr Berlusconi faces political and financial problems.

It was the prime minister's first proper public appearance after a month absent from view, during which time he is reported to have had a facelift.

In 10 years, Forza Italia has remained an unformed embryo, never a congress or political debate worthy of the name, never an idea, never anything Corriere Della Sera newspaper

The party faithful braved the cold weather to celebrate with their leader, coming by car, coach and charter flight from Forza Italia's northern stronghold.

Mr Berlusconi promised his supporters that he would reform the justice and economic systems.

"We find ourselves in front of a real Berlin Wall that is dividing us from the free Italy that we have in mind, but gradually our ideas are creating cracks," he declared.

He also referred to the facelift rumours, turning them into a dig at his left-wing opponents.

"The left has tried to dress itself up, it's had a facelift but it hasn't succeeded," he told the crowd, who often interrupted his speech with chants of "Silvio, Silvio".

The anniversary comes at a time when Mr Berlusconi is facing internal feuding within his coalition government and an accounting scandal at the food giant Parmalat.

A court's decision earlier this month to overturn a law giving the prime minister immunity from prosecution also means that he may face a corruption trial.

Economic record

Mr Berlusconi, with his party Forza Italia - or Go Italy - shot to fame when Italian political corruption scandals were at their height.

Although he has managed to reshape Italian politics in the past decade, he has struggled to do the same on the economic front.

The BBC's Frances Kennedy in Rome says no-one questions that Mr Berlusconi has re-designed the Italian political landscape, but critics say what has been good for him has not been good for Italy.

A poll released on Thursday said two out of three Italians thought that the government's economic policies had failed and that the cost of living was rising.

Forza Italia has also so far failed to come out of his shadow.

In its front page commentary on Friday, the Italian newspaper Corriere della Sera was scathing of the party.

"In 10 years, Forza Italia has remained an unformed embryo, never a congress or political debate worthy of the name, never an idea, never anything," it said.

Mr Berlusconi now has to work on both his government and party ahead of European Parliament elections in June.