Prime Minister Enrico Letta's ruling coalition will survive the withdrawal of support by Berlusconi's Forza Italia party, thanks to the defection of some of his former proteges who will stay on in the government.
But while he is a figure of fun around the world, Berlusconi is still a formidable campaigner who can continue as a figurehead leader even if he is banned from running for election for the next six years.
"Berlusconi talks about something that Italians feel strongly about - taxes," he said, adding that Berlusconi could now mount a populist campaign.
Berlusconi was in turns defiant and humble in a speech to thousands of supporters yesterday just minutes before the Senate declared his expulsion, donning the mantle of victimhood and vowing "a fight for liberty".
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He promised to hold another rally next Sunday to celebrate the founding of the first 1,000 "Go Silvio" fan clubs around the country and said he was staying to protect "our right, our assets and our freedom".
But Grillo's lawmakers were quick to reject comparisons.
"We're something else, completely different," said Paola Taverna, chief senator for the movement.
Other analysts say that the ejection is a major blow and Letta's government could start gaining in popularity as the economy gradually improves.
"His exclusion from parliament puts him in a precarious condition... And if this is not the end, it is clearly the beginning of a decline that could be quick," said Marcello Sorgi, the editor of La Stampa daily.
But the 77-year-old's bid to stay on could be hampered on the legal front more than at the ballot box.