The government of Silvio Berlusconi, Italy's prime minister and most powerful media magnate, has suspended a politically explosive plan to privatise Rai, the state-run television and radio company.

The final nail in the plan's coffin was driven home this week when Alfredo Meocci, Rai's new director general, disclosed that the company might make a loss of €80m ($96m, £54m) next year. "Rai's privatisation is de facto suspended," Mr Meocci told a parliamentary watchdog committee.