Blair isolated on Iraq conflict as Berlusconi bows out

Mr Berlusconi had been the only ally of Mr Blair and President George Bush in Europe after Jose Maria Aznar, the Spanish prime minister, was defeated in the aftermath of the Madrid bombings in March 2004. Mr Blair is likely to put a brave face on the defeat, although many will see it as a further nail in his own political coffin. However, he knows Mr Berlusconi's successor Romano Prodi from his time as the European Commission president.

The close relationship between Mr Blair and the Italian media mogul has mystified Labour MPs, who privately say the Blairs were dazzled by wealth. The election result is also likely to bring the curtain down on the free holidays the Blairs enjoyed at Mr Berlusconi's villa in Sardinia.

The Italian newspaper Corriere della Sera dubbed the Blairs "The Sultans of Bling" after Mr Blair declared receiving watches, earrings, a necklace, a ring and a bracelet from Mr Berlusconi.

However, it was David Mills, husband of the cabinet minister Tessa Jowell and a corporate lawyer who acted for Mr Berlusconi, who has caused Mr Blair most trouble. Mr Mills is still facing the possibility of charges with Mr Berlusconi over corruption, and Ms Jowell announced that she was separating from her husband as the calls for her resignation mounted.

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http://news.independent.co.uk/europe/article357234.ece