Silvio Berlusconi: House arrest most likely outcome.

Italy could be rocked by the same sort of general strikes that paralysed Greece if planned government cuts to bolster its economy go ahead, a major union warned today.

Ministers have approved €24.3bn in budget cuts for 2011-2012 to protect Italy from the market speculation that pushed Greece to the brink of bankruptcy.

Italy’s national airline, Alitalia, might stop flying within a week if unions don’t change course and accept a rescue plan offered by Italian investors, the country’s transport minister said today.