Italy has warned it faces a humanitarian crisis with some 1,600 refugees from Tunisia arriving in its waters over the past two weeks following unrest there.

ITALIAN police arrested scores of suspected mobsters yesterday, including three top fugitives believed linked to the gangland-style slaying of six African immigrants near Naples, authorities said.

Alitalia expected cancellations or delays for as many as 250 flights today as workers continued wildcat protests, while the Italian labour minister warned that the government would not bail out the troubled airline.

Italy’s labour minister has called for a referendum to see whether Italians want to temporarily bring back the lira after widespread popular discontent over high prices that many blame on the introduction of the euro.