MILAN — The Italian government and a broad European plan to save the euro were at risk Tuesday, with Premier Silvio Berlusconi locked in a high-stakes battle with coalition partners to muster support for emergency growth measures demanded by the European Union.
Markets are looking to the EU’s grand plan — promised in time for an EU summit today — for a turnaround in the debt crisis that will avert a potential global recession.
But the plan risked being delayed, yet again, as governments failed to agree on details. Berlusconi’s government, meanwhile, showed little sign of meeting the EU’s demands for reforms, a prerequisite for the grand plan to go ahead.
The summit of EU leaders, meant to be a confidence-building day, risked going down as another failure in Europe’s fight to stem its 2-year- long debt crisis.
EU officials say they will not present their comprehensive plan if Italy doesn’t agree to new economic measures they demanded Sunday. But Berlusconi has been unable to get his key ally in Parliament, the Northern League, to swallow an increase in the pension age. The Northern League says it will alienate its constituency of workers in the productive north.
Northern League leader Umberto Bossi conceded the government is at risk.
“Let’s say the situation is difficult, very dangerous,” he told reporters in Rome.
The head of Berlusconi’s People of Freedom Party, Angelino Alfano, suggested Berlusconi’s party had reached a deal with the Northern League — but no details were announced.
