It is illegal to solicit in public. Maisons are illegal. Prostitution racketeering is illgal- pimps, that sort of stuff.
Prostitutes may run their own business so long as their is no public soliciting.
The Alfano Lodo is pending a judgement before the constitutional court on grounds that it may be unconstitutional.
As is, Berlusconi has every reason to remain in power.
The best solution would be to pass a law that grants him lifetime immunity and impunity on the condition that he retire from politics. That, too, would be unconstitutional but would greatly limit the damages of berlusconismo.
In this specific case there seems to be a case of corruption, an exchange of favors concerning contracts and public bids. It is however just an investigative hypothesis for now.