Berlusconi had "had a good laugh" at a damning assessment of his "ineffective" leadership, his partying lifestyle and his close links with Russian Prime Minister Vladimir Putin, sources told Italy's ANSA news agency.

Britain's newspaper The Guardian had reported that Elizabeth Dibble, US charge d'affaires in Rome, described Berlusconi to be "feckless, vain, and ineffective as a modern European leader."

Another document from Rome reported that Berlusconi was a "physically and politically weak" leader whose "frequent late nights and penchant for partying hard mean he does not get sufficient rest," the paper reported.

And The New York Times said US diplomats in Rome expressed concern at Berlusconi's unusually close ties with Putin.

The reports mentioned lavish gifts, lucrative energy contracts and a "shadowy" Russian-speaking Italian intermediary, the paper reported.

The opposition Democratic Party said the latest revelations "confirm the level of discredit that Berlusconi has brought to Italy's image in the world."

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