Berlusconi ally says government may fall on austerity plan

The leader of Italian Prime Minister Silvio Berlusconi's main coalition ally, the Northern League, on...

Italian Prime Minister Silvio Berlusconi gives a speech 02 September 2002 at Sandton convention center in Johannesburg. Picture: AFP.

The leader of Italian Prime Minister Silvio Berlusconi's main coalition ally, the Northern League, on Tuesday warned the government risked falling over an austerity budget worth over 40 billion euros.

Berlusconi was meeting coalition leaders on Tuesday to seek political agreement on the budget, which includes cuts to ministry budgets, funding for town councils and healthcare.

When asked if the government risked collapsing over the austerity plan, League chief Umberto Bossi told reporters: "Yes."