Italian coalition seeks truce

Prime Minister Silvio Berlusconi's coalition struggled yesterday to resolve a blazing internal row over a new immunity law that has pushed relations within the Italian government to breaking point.

A centrist coalition party has warned it will quit the administration unless Justice Minister Roberto Castelli reverses his decision to invoke the controversial law and block an investigation into Berlusconi's business dealings.

Although few lawmakers believe the government will fall over the issue, three days of behind-the-scenes diplomacy have failed to secure a truce, underscoring deep divisions that beset the centre-right alliance.

"There is still room to avoid a full-blown government crisis, but the issue remains difficult," said Francesco D'Onofrio, parliamentary party leader of the Democratic Union of the Centre party (UDC), which has led the judicial revolt.

It is the second time in less than a month that parliament has been rocked by coalition rancour and the constant feuding risks overshadowing Italy's presidency of the European Union, which runs until December.

The latest controversy flared last week when magistrates complained that Castelli had used the immunity law to stop them obtaining US documents that they want as part of a probe into alleged tax fraud at Berlusconi's media company.

When the law was approved in June, legal experts said it could only be used to halt trials against Italy's top five officials and did not apply to investigations.