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DEBT CRISIS: Under pressure from the EU, Berlusconi promised réquilibrer the Italian budget for 2013

Silvio Berlusconi said Monday its European partners, notably France and Germany, pushing Italy to take rapid economic measures, saying that no EU country was in a position to give lessons to one another.

While his government met in emergency Monday evening to discuss further reforms demanded by its European partners, notably on pensions, the Chairman said in a statement that Italy would sound proposals at the next summit of the Union Europe on Wednesday.

However, Monday's meeting ended without any decision being taken, according to government sources.At the end of the meeting, Berlusconi held talks with its partners in the Northern League of pension reform to which they objected, and other reforms.

The day before, German Chancellor Angela Merkel and French President Nicolas Sarkozy had invited him to take the action at a press conference that the Italian media have deemed humiliating for a number of the Italian government.

A smile exchanged between Nicolas Sarkozy and Angela Merkel while being asked about the insurance provided by Berlusconi on reform had given grist to the Italian press.

"No one can be called self-administrator and speak on behalf of elected governments and peoples of Europe", said Italian Prime Minister, 75 years old. "No one is in a position to give lessons to its partners."

He added that Italy had taken steps to consolidate its public finances and reiterated that he would balance its budget in 2013.He said his government has a very clear position on how to deal with the crisis of sovereign debt and banking crisis, "especially the Franco-German".

European leaders have shown themselves increasingly frustrated by the erratic response of the Italian government to the crisis, saying it could threaten the entire euro area if Italy does not improve its public finances and does not regain confidence in financial markets.

Division of pension reform

Italy, the third largest economy in the euro area, is now the heart of the debt crisis, while concerns are growing around its anemic growth and sustainability of its public debt of 1.800 billion euros.

Since last August, and the purchase by the European Central Bank bonds in Italy in an attempt to reassure the markets, the government announced a series of reforms and austerity measures.

But the commitment made by Silvio Berlusconi to return the budget to balance in 2013 has failed to reassure the markets about the health of the third largest economy in the euro area.

The bond yield is close to ten years now 6%, a rate similar to that which led the ECB to intervene.

Under the insistent pressure exerted throughout the weekend by Paris and Berlin, Silvio Berlusconi was to propose a reform of the pension system which is strongly opposed to its main ally the Northern League.

"I plan to take advantage of the situation to see if we can adopt measures which I have always thought but I could not implement due to differences in the majority, for example on pensions. Mainly pensions, "said" Il Cavaliere "Sunday.

But the issue of pension reform is a sticking point with the Northern League, indispensable ally of the People of Freedom (PDL) of Silvio Berlusconi.

"The League has always been hostile to a pension reform", said Marco Reguzzoni Monday, parliamentary leader of the League.

The current system provides for a pension retirement at age 65 for men and a gradual shift from 60 to 65 years for women.