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M. Continuo

Italy must re-negotiate deficit commitments with EU - Berlusconi


    ROME (Reuters) - Italy must re-negotiate the public finance commitments it has given to European partners, centre-right leader and former Prime Minister Silvio Berlusconi said on Tuesday.

    Italy's newly installed coalition government led by Prime Minister Enrico Letta is dependent on Berlusconi's People of Freedom party (PDL) for its survival.

    "We have to go to Europe ... to re-negotiate the deficit commitments that we made," Berlusconi told reporters in parliament.

    Berlusconi also said the government must abolish an unpopular housing tax, which Letta has promised to suspend but not scrap, or the PDL would withdraw its backing.

    (Reporting by Roberto landucci, writing by Gavin Jones)