By Deepa Babington and Alberto Sisto

ROME (Reuters) - The Italian government will give Alitalia (AZPIa.MI: Quote, Profile, Research) a $475 million emergency loan, risking the ire of the European Commission, as it tries to avoid bankruptcy at the airline after Air France-KLM (AIRF.PA: Quote, Profile, Research) dumped its bid.

Outgoing Prime Minister Romano Prodi said on Tuesday the figure had been requested by his successor, Silvio Berlusconi, in order to have time to sort out alternatives.

With the state-controlled carrier expected to run out of cash in a few months, Italy's incoming and outgoing administrations are heading a rare bipartisan effort to keep the national carrier in the air until a new buyer is found.

Air France-KLM formally withdrew its offer on Monday, dealing a final blow to the deal, which fell apart this month over union opposition.

That gave Berlusconi his first big headache since winning last week's election -- finding a way to funnel cash to the carrier without angering the European Commission, which has threatened court action over any further state aid for Alitalia.

Prodi said his cabinet agreed the 300 million-euro ($475 million) bridge loan that must be reimbursed by the end of the year. The loan should allow Alitalia to stave off bankruptcy in the short-term and give it breathing space for a few months.

Business daily Il Sole 24 Ore had said reasons of "public order" would be cited to defend the loan from EU concerns.

'SERIOUS AND DAMAGING'