Italian prime minister Silvio Berlusconi has reached an overnight deal with his allies in parliament on emergency growth measures demanded by the European Union.

A FLARE-UP over the European Central Bank and political turmoil in Italy kept the eurozone on edge last night on the eve of today’s summit meant to confront the currency bloc’s worsening sovereign debt crisis.

Pressure was growing today on Italy’s embattled premier Silvio Berlusconi as he struggled to win support for a vital emergency growth plan.

Italian Premier Silvio Berlusconi has survived a confidence vote in the Italian Parliament.

ITALIAN Prime Minister Silvio Berlusconi called for a vote of confidence in his government, saying that a collapse of his centre-right coalition now would be catastrophic for the country and its economy.

Italian Premier Silvio Berlusconi is fighting for his political survival on the eve of a confidence vote in parliament which could force him out of office.

PRIME Minister Silvio Berlusconi is bracing for a confidence vote in Italy’s parliament this week that will determine his political future amid a rebellion by some allies and growing discontent with his leadership at a time of financial crisis.

ITALIAN Economy Minister Giulio Tremonti pledged to meet European Central Bank demands for sweeping economic reforms in exchange for help in shielding Italy from the eurozone debt crisis.

ITALIAN Prime Minister Silvio Berlusconi’s main coalition ally has warned the government could collapse over an unpopular austerity plan.

ITALIAN Prime Minister Silvio Berlusconi overcame coalition infighting to win a vote of confidence, his first parliamentary test since suffering two stinging electoral losses.

Beleaguered premier Silvio Berlusconi has come under pressure on two fronts: his crucial coalition ally demanded tax cuts or early elections, and Italy's credit rating appeared in danger due to high public debt and a laggard economy.

ITALIAN Prime Minister Silvio Berlusconi recognised a humiliating defeat last night in referendums aimed at blocking nuclear power and abolishing a law intended to give him legal immunity.

ITALIAN premier Silvio Berlusconi has acknowledged that his centre-right party suffered defeats in his political stronghold of Milan and in the southern city of Naples — outcomes that observers say could undermine his government’s stability and his leadership.

Two small bombs exploded overnight outside the northern Italian headquarters of a right-wing party which is a member of Premier Silvio Berlusconi’s government, police said today.

A DEFIANT Berlusconi, already weakened by a sex scandal, has vowed to stay despite the ruling by the constitutional court, which he called a political organ.

DEFIANT Italian Prime Minister Silvio Berlusconi has been dealt another blow after the country’s constitutional court threw out an immunity law passed by his government which could protect him from tax evasion and bribing charges.

A key member of Premier Silvio Berlusconi’s conservative government has called for Italy’s soldiers to be withdrawn from Afghanistan, but the Italian defence minister immediately insisted the troops would stay.

Low-cost airline Ryanair has flown into a new publicity storm by using a photo of a controversial and outspoken Italian politician to promote its flights.

Italy has accused Ryanair of employing a "vulgar and offensive" ad against rival airline Alitalia that made it look as if an Italian cabinet minister was giving passengers the finger.

A Cabinet minister resisted calls for his resignation today, after his decision to wear a T-shirt featuring cartoons of the Prophet Muhammad was blamed for sparking deadly clashes at an Italian consulate in Libya.

THE German MEP whose clash with Italian Prime Minister Silvio Berlusconi set off a diplomatic crisis reignited the row yesterday when he claimed Italy has a racist government.

ITALIAN prime minister Silvio Berlusconi desperately fought to save his coalition government last night.

ITALIAN prime minister Silvio Berlusconi, facing a German tourism boycott that would cost his country millions of pounds, yesterday came under fire from one of his closest political allies.

ITALIAN prime minister Silvio Berlusconi triggered a diplomatic row yesterday when he compared a German MEP to a Nazi during Italy’s six-month start of the EU presidency.

Italian rescue ships have recovered the bodies of seven immigrants who drowned off the North African coast when their ship capsized.

Italy’s lower house of parliament approved stiffer measures to combat illegal immigration today - including provisions to fingerprint non-EU nationals and to send some illegal migrants to jail for a year.

Seven years after his first, stormy tenure, media baron and conservative leader Silvio Berlusconi was tonight poised to get his chance to govern Italy again.

Media baron Silvio Berlusconi today held a narrow lead in both chambers of parliament in his bid to win back Italy’s premiership with a coalition of right-wing allies - but it was unclear if he had captured the majority needed to govern.

The Italian government has scheduled national elections for May 13 and says municipal elections would be held the same day.