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Edition: U.S. Article Comments (0) Full Focus Photos of the week Our top photos from the past week. Full Article Follow Reuters Facebook Twitter RSS YouTube Read New elongated Boeing 747-8 debuts in Paris | 9:02am EDT Sega says 1.3 million users affected by cyber attack 6:28am EDT Obama impersonator cut off at Republican conference 18 Jun 2011 Papandreou asks Greece to avoid "catastrophic" default | 9:29am EDT Black hole shreds star, sparking gamma ray flash 18 Jun 2011 Discussed 72 Republicans to debate, with Romney the frontrunner 47 Weiner tells friends he will resign: NY Times 43 IMF cuts U.S. growth forecast, warns of crisis Watched Airbus' view of flying in the future Mon, Jun 13 2011 Greeks protest austerity measures Sat, Jun 18 2011 Hefner, fiancee split; Schwarzenegger mistress talks Wed, Jun 15 2011 Berlusconi's allies back Italian coalition for now Tweet Share this Email Print Related News Greek PM dumps finance chief to try to survive Fri, Jun 17 2011 Greek PM reshuffles government, lenders dangle lifeline Thu, Jun 16 2011 Greek PM to reshuffle government to advance austerity plan Wed, Jun 15 2011 Greek PM says will form new government after mass protest Wed, Jun 15 2011 Analysis: Berlusconi's 17 years of dominance draw to a close Wed, Jun 15 2011 Analysis & Opinion Muni sweeps: Taxes are the fuel for public sphere The jobs crisis Related Topics World » Italy » Italian Prime Minister Silvio Berlusconi gestures as he talks talks during a news conference in Rome June 16, 2011. Credit: Reuters/Tony Gentile By Ilaria Polleschi PONTIDA, Italy | Sun Jun 19, 2011 10:21am EDT PONTIDA, Italy (Reuters) - Italian Prime Minister Silvio Berlusconi's coalition allies said on Sunday they would stay in his struggling center-right government for the moment despite two crushing electoral losses in recent weeks. "This is a moment favorable for the left," Umberto Bossi, leader of the pro-devolution, anti-immigrant Northern League, told a party rally. "We will not be responsible for sending the country to ruin." Berlusconi's coalition is reeling from local election and referendum defeats which have boosted the center-left opposition and raised speculation that the government could fall apart before its term ends in 2013. Northern League support is vital for the survival of the government, which faces two votes in parliament this week that it must win to be able to carry on. The League has been increasingly at odds with the prime minister's PDL party with ministers openly sniping at one another in the press over issues ranging from tax reforms to League calls to shift government ministries to northern Italy. Speaking in Pontida, the northern town that was birthplace in 1167 of the medieval Lombard League, Bossi called for more power to the regions, cuts to military missions abroad and reforms to lower the tax burden for small firms. "Fiscal pressure has gone past all limits," he said, but stopped short of calling for sweeping tax cuts that could put the badly strained public finances at risk. Ratings agency Moody's on Friday said it may cut Italy's credit ratings because of concerns about its ability to bring down a public debt mountain equivalent to about 120 percent of gross domestic product. TEST OF SUPPORT The rally in Pontida had been seen as a test of the solidity of Berlusconi's coalition ahead of announcements on tax reforms and measures to keep deficit reduction plans on track expected in coming weeks. "(Economy Minister Giulio) Tremonti says we can't cut taxes because the markets -- London, Wall Street, America -- would destroy us, would make us end up like Greece. Tremonti says to reduce fiscal pressure we have to find the money," Bossi said. "We'll find some money, firstly by ending these war and peace missions which cost so much," he said, to loud cheers. Many grassroots League supporters have been angry about the party's close ties to Berlusconi, who is entangled in a series of financial and morals scandals and who is increasingly seen as an electoral liability. Interior Minister Roberto Maroni repeated the League's call to withdraw from the military campaign in Libya, which it has opposed from the start and which the League says has unleashed a wave of illegal immigration from North Africa. There were chants of "Secession! Secession!" from the 80,000-strong crowd, many in the League's green colors. Bossi said Berlusconi would have to agree to the party's demands if he wanted to ensure their continued support. But despite the odd jibe about Rome, symbol of the central state, and calls to shift some ministries north, both the PDL and the center-left interpreted the rally as a sign of support for the government, a view shared in Pontida itself. "I thought Bossi's speech had some good ideas, now they have to implement them," said 74-year-old Sergio Tarondo, from Monza. "Even though I was hoping for something more incisive, there's still an arrangement between the League and the PDL." (Writing by James Mackenzie; Editing by Janet Lawrence) World Italy Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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