People of Freedom party leader Silvio Berlusconi covers his face as he speaks on a mobile phone after delivering his speech at the Senate, in Rome, Wednesday, Oct. 2, 2013. Berlusconi acknowledged defeat Wednesday and announced he would support the government of Premier Enrico Letta, a stunning about-face on the Senate floor after defections in his party robbed him of the backing he needed to bring down the left-right coalition government. It was a major setback for Berlusconi, who had demanded his five Cabinet ministers quit the government and bring it down, incensed at a vote planned Friday that could strip him of his Senate seat following his tax fraud conviction and four-year prison sentence. AP Photo/Gregorio Borgia People of Freedom party leader Silvio Berlusconi covers his face as he speaks on a cell phone after delivering his speech at the Senate, in Rome, Wednesday, Oct. 2, 2013. Silvio Berlusconi acknowledged defeat Wednesday and announced he would support the government of Premier Enrico Letta, a stunning about-face on the Senate floor after defections in his party robbed him of the support he needed to bring down the government. People of Freedom party leader Silvio Berlusconi passes past the Government and Presidency seat giving his yes vote on the occasion of a confidence vote at the Senate, in Rome, Wednesday, Oct. 2, 2013. Italian Premier Enrico Letta, top, and vice premier Angelino Alfano listen to a senator speech at the Senate, in Rome, Wednesday, Oct. 2, 2013. People of Freedom party leader Silvio Berlusconi acknowledged defeat Wednesday and announced he would support the government of Premier Enrico Letta, a stunning about-face on the Senate floor after defections in his party robbed him of the support he needed to bring down the government. Italian Premier Enrico Letta kisses the hand of an unidentified senator after delivering his speech at the Senate, in Rome, Wednesday, Oct. 2, 2013. Letta was putting his government's survival to confidence votes in Parliament on Wednesday amid a divisive split in Silvio Berlusconi's party that could at least temporarily save his fragile ruling coalition. ROME (AP) - Silvio Berlusconi made a stunning about-face Wednesday and threw his support behind the government of Premier Enrico Letta in a confidence vote, acknowledging defeat on the Senate floor after defections in his party robbed him of the backing he needed to bring down the government. Berlusconi's support ensured the survival - for now - of Letta's 5-month-old left-right coalition. But it signaled that the 77-year-old billionaire's once unchallenged authority over Italy's center-right has wobbled as his judicial woes catch up with him. "Italy needs a government that can produce structural and institutional reforms that the country needs to modernize," Berlusconi said in his brief remarks. We have decided, not without internal strife, to vote in confidence. It was a major setback for Berlusconi, who over the weekend had demanded his five Cabinet ministers quit the government and bring it down, incensed at a vote planned Friday that could strip him of his Senate seat following his tax fraud conviction and four-year prison sentence. But in a remarkable challenge to Berlusconi's authority, several allies balked and said they would instead support Letta's hybrid coalition to push ahead with necessary economic and political measures. Italy is in its second year of recession, youth unemployment reached a record 40 percent last month and Italy's president has insisted that a new electoral law be passed to avoid inconclusive results in any future general election. The unusual show of defiance could signal that Berlusconi's influence has seriously eroded after two decades leading Italy's center-right and being the main protagonist in Italy's political scene. Some commentators have likened Berlusconi's erratic and seemingly counterproductive reaction to the challenge to the desperate, fitful sparks of a candle going out. For the first time ever, though, Berlusconi now has a definitive court sentence against him and the very real possibility that he could be barred from holding public office. Berlusconi's close collaborator Renato Schifani insisted that Berlusconi hadn't been weakened and stressed that the party had voted together. "I am truly happy that there was no split," he was quoted as saying by Italian news agencies. Berlusconi's leadership has been strengthened. Heading into the confidence vote, the numbers were in flux. Dissenting Sen. Roberto Formigoni said some 25 Berlusconi allies had defected and signed on to support Letta, apparently enough to tip the balance in Letta's favor in the 321-member chamber. Rather than highlight the divisions and defections, Berlusconi instead threw in the towel and changed course. In the end, the Senate voted to back Letta 235-70 with 14 abstentions and one absence. The Milan stock exchange gained nearly 2 percent on the announcement, which seemed to have caught the entire chamber by surprise since minutes earlier a party leader had said Berlusconi's forces would vote against Letta. In a speech to the Senate, Letta hailed his 5-month-old government's successes and outlined his agenda to revive Italy's moribund economy and turn around its record unemployment.