Silvio Berlusconi and Gianfranco Fini set to clash in parliament

The bitter feud between Italian premier Silvio Berlusconi and his arch-rival Gianfranco Fini hit new depths yesterday as accusations of smears, lies and dirty tricks flew ahead of a showdown in parliament next week.

The split between Mr Berlusconi and Mr Fini, co-founders of the ruling People of Freedom party (PDL), has dominated the Italian political scene for months and brought the centre-right government close to collapse.

Mr Fini, the speaker of parliament, has accused the billionaire media entrepreneur Mr Berlusconi of running the government like one of his private companies, while the prime minister accuses his rival of betrayal and says he is moved by personal ambition. But the rancour has grown this week after Mr Fini supporters said the government had used elements in the intelligence services as part of a media smear campaign.

The accusations have been furiously denied by the government, which said they were defamatory and irresponsible.