PM Prodi to chair Italy's new Democratic Party

ROME, May 31 (Reuters) Italian Prime Minister Romano Prodi has been named chairman of a new centre-left party that will merge two of the main parties in his ruling coalition, boosting his power as polls show flagging faith in the government.

Prodi hopes the Democratic Party, to be launched in October, will give more stability to a government shaken by infighting between moderates and the hard left since it beat conservative premier Silvio Berlusconi in elections a year ago.

''It was a unanimous decision to confirm Prodi as prime minister and chairman of the PD, while the constituent assembly will nominate a party secretary,'' said Piero Fassino, leader of the Democrats of the Left, one of the two parties.

Late yesterday the committee steering the launch of the new party named October 14 as the date for elections for the constituent assembly, which will in turn elect a party secretary to be the hands-on leader of the PD.

Prodi, former president of the European Commission, hit out at bickering coalition allies this week after the centre left was soundly beaten by the Berlusconi-led opposition in local elections at the weekend.

He already had to resign briefly in February to impose his authority on the coalition after a row over foreign policy and told one newspaper yesterday that fractious centre-left leaders should unite behind him, or find a new leader.

''How can one give an image of good governance when it is your government allies who are the first to pick apart the policies you make?'' he told La Repubblica newspaper.

REUTERS PJ BD1842