The rebirth of Forza Italia is aimed at reinvigorating the center-right, harkening to Berlusconi's triumphant entrance into politics in the early 1990s.
The three-time former premier is on the verge of losing his Senate seat for tax fraud, but he would not be barred from leading a political party.
Still, the yesterday's announcement of the new Forza Italia, rather than giving clear impetus to the center-right, revealed confusion within the party.
Berlusconi, 77, played down any differences, telling reporters in Rome that Alfano "enjoys his respect" and that the party was united.
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He also pledged that the center-right will continue to support Letta's government, just weeks after he failed to bring it down after Alfano and other government ministers from the party refused his order to resign.
Political analyst Stefano Folli said the abstentions of Alfano and other center-right ministers indicate that "a split is very probable."
"The party cannot be born with all the ministers in the government absent. That is the ambiguous environment," said Folli, a political analyst at the business daily il Sole-24 Ore.
Folli said Berlusconi's support for Letta is "formal" and that once he loses his Senate seat, the split could formalize with Forza Italia joining the opposition, leaving behind the center-right faction that backs the cross-party Letta government.
It remains unclear when the Senate will vote on yanking his seat for the tax fraud conviction and four-year sentence. The pending six-year political ban would prohibit the billionaire media mogul from running in new elections, but not from heading a political movement.
Berlusconi also faces a trial in February on a corruption charge, and is appealing a conviction of paying an under-age teen for sex and forcing an official to cover it up. He denies wrongdoing in all the cases, claiming he is a victim of a judicial plot to drive him from power.