Berlusconi ally says austerity plan may topple government
The €43 billion plan, seen by economists as vital to avoid contagion from Greece’s debt crisis, is Berlusconi’s biggest test since suffering two major political defeats and has raised tensions within the ruling coalition.
The Northern League, the pro-devolution government member led by Umberto Bossi, opposes budget plans to cut funding to local governments and pension spending, putting it at odds with Economy Minister Giulio Tremonti. Tremonti has denied newspaper reports that he had threatened to resign if his austerity plan was changed. He is widely credited with protecting Italy from the global economic crisis by insisting on prudent fiscal policies.
