ROME - Silvio Berlusconi had a rocky five years as Italian premier: His gaffes, his support for war in Iraq and his legal woes made the conservative billionaire a polarizing, love-him-or-hate-him personality at home and abroad.

Berlusconi finally stepped down Tuesday to make way for his center-left rival Romano Prodi, after refusing for weeks to concede defeat in parliamentary elections. But despite leaving behind a stagnant economy and a ballooning budget deficit, it may be too soon to count Berlusconi out.

He befriended President Bush and Russian President Vladimir Putin. But his off-the-cuff remarks occasionally embarrassed the country, such as when he compared a German lawmaker to a Nazi concentration camp guard.

"They will miss me," the 69-year-old Berlusconi was quoted as telling his ministers shortly before handing in his resignation to the president Tuesday.

At home, his government passed reforms partially liberalizing the labor and pension systems, among Europe's most inflexible. But after five years, the country is mired in zero growth and its budget deficit rose to 4.1 percent last year from 3.4 percent.

Analysts say the country's poor financial state ultimately cost Berlusconi the election - in part because the country's richest man had promised Italians an economic miracle.

In foreign affairs, the premier took Italy's traditional alliance to Washington to a new level, staunchly supporting Bush's war on terror and deploying 3,000 troops to Iraq after the ouster of Saddam Hussein despite fierce domestic opposition.

By contrast, relations with Europe were difficult. From the euro to European Central bank policies, Berlusconi spared no criticism, and was treated coldly by some European leaders as a result.

The premier's moments in the sun were often marred by embarrassment: A Group of Eight summit he hosted in Genoa in 2001 was thrown into turmoil by violent anti-globalization demonstrations and the death of a protester.

And his gaffes consistently grabbed headlines. Shortly after the Sept. 11 attacks, he asserted Western civilization was superior to Islam. During this year's election campaign, he claimed Chinese communists boiled babies for fertilizer.

Berlusconi's legal woes were a constant theme during his tenure. He was the first sitting premier to stand trial, accused by Milan prosecutors of bribing judges. He was eventually cleared, as he has been in all previous cases, either because he was acquitted or because the statute of limitations expired.

He attracted conflict of interest accusations and charges that he used the government to protect his business or shield himself from prosecution. He responded by launching vehement attacks at Italian magistrates, who he says are left-leaning.

Berlusconi still faces possible indictment on charges of bribery and tax fraud. He didn't enjoy immunity from prosecution as premier - he had tried, but a law backed by his government providing such immunity was overturned.

Despite his troubles, the departure of some ministers and even a brief resignation and Cabinet reshuffle last year, Berlusconi was able to deliver a sense of stability to a country that has known decades of "revolving door" governments.

Berlusconi has said he would not go back to running his companies - he owns Italy's leading private broadcasters, as well as publishing houses and advertising agencies - and insists his future rests in politics.

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