Berlusconi moves 'epoch making' justice reforms
However, critics said the move was aimed at taming the country's powerful independent magistrates.
The centre-left opposition has also accused Mr Berlusconi of trying to gain revenge on magistrates for his legal troubles.
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Hide AdThe reform proposal, which will have to undergo a long parliamentary process before final approval, came as Mr Berlusconi resumed hostilities with magistrates whom he has repeatedly accused of trying to bring him down for political reasons.
The plan would introduce a clear separation between the careers of investigative magistrates and judges and transfer powers for disciplining magistrates to an outside body. It would also speed up Italy's justice system.
Judges who make wrong decisions could be liable to lawsuits by aggrieved citizens, similar to medical malpractice suits, justice minister Angelino Alfano said.