CONSERVATIVE leader Silvio Berlusconi starts his third stint as premier with the swearing in Thursday of Italy's 62nd postwar government.

Berlusconi unveiled his new conservative government Wednesday and gave top posts to close allies in one of Italy's most right-wing cabinets since World War Two.

The 71-year-old media tycoon, whose party did unexpectedly well in last month's election, read out his 21-member cabinet list after meeting the head of state at the presidential palace.

Giulio Tremonti returned as economy minister and Franco Frattini left his post as European commissioner to become foreign minister.

Both held the same jobs in previous Berlusconi governments.

The government － Italy's 62nd since 1945 － includes nine ministers without portfolio and four women.

Berlusconi held last-minute negotiations with his main allies from the National Alliance (AN) － a party with fascist roots － and the vehemently anti-immigrant Northern League to distribute the cabinet posts.

Berlusconi faces the difficult tasks of kick-starting a sluggish economy, boosting productivity and cutting the privileges of a political class that is much maligned and largely discredited.

The Italian economy has grown more slowly than the 15-nation euro-zone average for more than a decade, and it risks falling into recession this year amid the global slowdown. Berlusconi has promised tax breaks on overtime work and bonuses linked to productivity gains.

Another priority for Berlusconi is cleaning up the garbage that has piled up in the streets of Naples. He has repeatedly said that the garbage crisis had done great damage to Italy's image, and he has promised to hold Cabinet meetings in the southern Mediterranean city until the problem is solved.

(SD-Agencies)