The granddaughter of former Italian dictator Benito Mussolini says she is setting up a new party, after leaving the right-wing National Alliance.

Alessandra Mussolini quit the party - a partner in the government - after comments made this week by National Alliance leader Gianfranco Fini.

During a trip to Israel, Mr Fini called Mussolini's rule "disgraceful".

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Mr Fini once described Benito Mussolini as the "greatest statesman of the 20th Century", but has long renounced fascist ideology.

During his visit in Israel he described Mussolini's rule as a "shameful chapters in the history of our people" and denounced as "disgraceful" the anti-Jewish laws approved in 1938.

Alessandra Mussolini reacted with outrage.

She said on Thursday that she was leaving the party, citing "incompatibilities not so much with my policies but rather with the family name I carry".