Berlusconi rejects claims coalition is on verge of collapse

ITALIAN Prime Minister Silvio Berlusconi has rejected growing speculation that his fragile centre-right coalition will collapse soon, promising new reforms as growing market pressure pushed Italy’s borrowing costs to a new record.

Berlusconi said his alliance remained solid with the regional pro-devolution Northern League party, whose leader Umberto Bossi has expressed open scepticism about the survival of the coalition government.

“There is an absolute need for political stability and Bossi thinks exactly the same way I do. The pact we have with the League has never been up for discussion,” he said.