UPDATE 1-Berlusconi forms new Italy government

(Adds government to be sworn in on Thursday, key ministers)

ROME, May 7 (Reuters) - Italy's prime minister-elect Silvio Berlusconi formed his new centre-right government on Wednesday after winning last month's parliamentary election.

The 71-year old conservative read out his cabinet list to reporters after meeting with the head of state at the presidential palace.

Berlusconi said he and his ministers would be sworn in at the palace at 1500 GMT on Thursday.

Giulio Tremonti will return as economy minister, as expected, and Franco Frattini will leave his post as European commissioner to become foreign minister.