From 1992 to 1997, Italy faced significant challenges as voters disenchanted with political paralysis, massive government debt, extensive corruption, and organized crime's considerable influence collectively called the political system Tangentopoli. As Tangentopoli was under a set of judicial investigations by the name of Mani pulite (Italian for "clean hands"), voters demanded political, economic, and ethical reforms. The Tangentopoli scandals involved all major parties, but especially those in the government coalition: between 1992 and 1994 the DC underwent a severe crisis and was dissolved, splitting up into several pieces, among whom the Italian People's Party and the Christian Democratic Center. The PSI (along with other minor governing parties) completely dissolved.
The 1994 elections also swept media magnate Silvio Berlusconi (leader of "Pole of Freedoms" coalition) into office as Prime Minister. Berlusconi, however, was forced to step down in December 1994 when his Lega Nord partners withdrew support. The Berlusconi government was succeeded by a technical government headed by Prime Minister Lamberto Dini, which left office in early 1996.
In April 1996, national elections led to the victory of a centre-left coalition under the leadership of Romano Prodi. Prodi's first government became the third-longest to stay in power before he narrowly lost a vote of confidence, by three votes, in October 1998. A new government was formed by Democrats of the Left leader and former communist Massimo D'Alema, but in April 2000, following poor performance by his coalition in regional elections, D'Alema resigned. The succeeding centre-left government, including most of the same parties, was headed by Giuliano Amato (social-democratic), who previously served as Prime Minister in 1992-93, from April 2000 until June 2001. In 2001 the centre-right formed the government and Silvio Berlusconi was able to regain power and keep it for a complete five-year mandate, becoming the longest government in post-war Italy. Berlusconi participated in the US-led multinational coalition in Iraq.
The elections in 2006 returned Prodi in government, leading an all-encompassing centre-left coalition of 11 parties (L'Unione). Prodi won with only a slim majority in the Senate, also due to the new proportional electoral law introduced by Berlusconi and Calderoli in 2005. In the first year of his government, Prodi had followed a cautious policy of economic liberalization and reduction of public debt. His government, in loss of popularity, was anyway sacked by the end of support from centrist MPs led by Clemente Mastella.
Berlusconi won the last snap elections in 2008, with the People of the Freedom party (fusion of his previous Forza Italia party and of Fini's Alleanza Nazionale) against Walter Veltroni of the Democratic Party. In 2010, Berlusconi's party saw the splintering of Gianfranco Fini's new faction, which formed a parliamentary group and voted against him in a no-confidence vote on 14 December 2010. Berlusconi's government was able to avoid no-confidence thanks to support from sparse MPs, but has lost a consistent majority in the lower Chamber.