ITALY:A DAY after his less than comfortable experience at Sunday's EU summit in Brussels, Italian prime minister Silvio Berlusconi came under attack at home from industrialists, trade unionists and opposition figures.

And, ahead of an emergency cabinet meeting to agree additional austerity measures, his government partner, the Northern League, signalled its virulent opposition to radical pension reform. The meeting ended late last night with no statement from the Government.

Mr Berlusconi had emerged from a torrid session in Brussels with French president Nicolas Sarkozy and German chancellor Angela Merkel under instructions to come up with a radical cost-cutting package which would convince Italy’s partners that his government has the will and ability to put its house in order.

With many expecting the cuts to hit Italy’s generous pensions system, senior Northern League figure interior minister Roberto Maroni warned his party would be against such cuts, in particular plans to raise the pensionable age to 67. “Our position on pension reform is very clear. We’ve already done our bit, pensioners have already paid up.”

That view was shared by fellow party member Rosi Mauro, who called on the government to stop “putting its hands into the pockets of workers and pensioners”.

Trade unions expressed opposition, with UILM saying members would take to the streets if the pension age rose. Mr Berlusconi is believed to be considering one-off amnesties for income tax evasion, judicial litigation, illegal building and unpaid TV licences.

Opposition figures continued to call for his resignation. “It is clear to everyone now that Sarkozy and Merkel are governing Italy. Berlusconi has made Italy into a figure of ridicule and a laughing stock . . . ” said Green leader Angelo Bonelli.