Italy originally asked for Switzerland's approval to forward the documents in 1999, and although Switzerland agreed to the request, two offshore companies, All Iberian and Catwell lodged an appeal. This has just been overturned by the Swiss supreme court.

Mr Berlusconi's media-heavy empire has been dogged by controversy for years, although it hasn't noticeably hindered his political career. He has come under criticism for his failure to address the conflict of interest between his role as Italian political leader and the administration of his family owned empire, estimated to be worth over $10.3 billion. But when he was elected on May 13th this year, the Premier promised to resolve this latest conflict within his first hundred days in office. He announced on Sunday that he would be appointing three (as yet unknown) 'wise men' to oversee his financial activities.

Although his last stint in office lasted just seven months, and despite the controversy that surrounds its leader, Mr Berlusconi's Conservative Alliance government is so far proving popular with the Italian people. The Premier has said that his top priorities include cutting red tape in the country's notoriously bureaucratic government, wide ranging economic reform designed to reduce corporate profits tax, and an eventual reduction in personal income tax.