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Edition: U.S. Article Comments (0) Slideshow Full Focus Editor's choice Our top photos from the past 24 hours. Full Article Follow Reuters Facebook Twitter RSS YouTube Read Fitch sees risk of Greece, U.S. debt defaults | 11:04am EDT RIM starts handing out layoff notices, report says 9:53am EDT Huntsman enters 2012 race, vows "hard decisions" | 11:39am EDT U.S. releases graphic tobacco warning labels | 9:52am EDT Amy Winehouse cancels entire tour | 9:17am EDT Discussed 48 Weiner tells friends he will resign: NY Times 47 IMF cuts U.S. growth forecast, warns of crisis 46 Ron Paul wins 2012 Republican straw poll in New Orleans Watched Hefner's revenge; Ryan Reynolds stops traffic Fri, Jun 17 2011 Grim cigarette labels aim to curb smoking Mon, Jun 20 2011 Airbus A380 damaged at Paris Air Show Mon, Jun 20 2011 Italy's Berlusconi overcomes parliamentary test Tweet Share this Email Print Related News TIMELINE-Silvio Berlusconi as prime minister 6:40am EDT Italy's Berlusconi faces test in parliament 5:06am EDT UPDATE 1-Berlusconi's allies back Italian coalition for now Sun, Jun 19 2011 Analysis: Berlusconi's 17 years of dominance draw to a close Wed, Jun 15 2011 Berlusconi suffers stinging referendum defeat Mon, Jun 13 2011 Analysis & Opinion Italy’s slow justice finally snares central banker Related Topics World » Italy » 1 / 2 Italian Prime Minister Silvio Berlusconi (C) talks during a voting session at the lower chamber of the deputies in Rome June 21, 2011. Credit: Reuters/Tony Gentile By Deepa Babington ROME | Tue Jun 21, 2011 9:13am EDT ROME (Reuters) - Italian Prime Minister Silvio Berlusconi overcame coalition infighting to win a vote of confidence on Tuesday, his first parliamentary test since suffering two stinging electoral losses. Berlusconi's center-right government won the lower house vote on measures to boost growth by a margin of 24 votes, thanks to its Northern League ally that is reluctantly supporting him after defeat in referendums and local polls over the past month. The motion passed with 317 deputies voting in favor and 293 against. Two lawmakers abstained. The victory is likely to provide only brief respite for Berlusconi, who faces plummeting approval ratings, squabbling allies and a faltering economy. Analysts warn Italy could pay a heavy price for failing to push through reforms and ratings agencies Standard & Poor's and Moody's both lowered their outlook on Italy over the past month, citing doubts about its ability to cut huge public debt. "The window of opportunity for the government to set the pace of the policy agenda is closing," Barclays Capital analysts said in a note. "Markets are likely to demand higher spreads unless Italy switches gears soon." But Berlusconi is battling to keep his coalition together, with an increasingly frustrated League demanding tax cuts and an end to Italy's costly mission in Libya. Asked if Berlusconi would see out the end of his term in 2013, the League's mercurial leader Umberto Bossi bluntly said: "If he does the right things, yes. We've already given Berlusconi a timeline." WANING FORTUNES Berlusconi was expected to address the Senate later on Tuesday, outlining his government's program for the rest of its term, including concessions to placate the League. A separate vote in the lower house to verify whether the government enjoys a majority may be called on Wednesday. Berlusconi faces a bigger test in coming weeks when he must push through austerity measures totaling about 40 billion euros ($57 billion) to eliminate the budget deficit by 2014 -- a task made even more arduous by the League's demand to cut taxes. In a reminder of the price of inaction, Moody's said on Friday it may cut the country's rating over concerns about its ability to bring down a public debt mountain equivalent to about 120 percent of gross domestic product. The head of Fitch's sovereign ratings unit told Reuters on Tuesday the agency has no plans to change its rating or outlook on Italy at the moment, but warned that any tax cuts that are not matched by spending cuts would be worrying. Well-known for bouncing back from the most difficult of situations, Berlusconi managed to wave off a series of sex scandals soon after sweeping to power in 2008. But his fortunes began to wane after an acrimonious split with Gianfranco Fini, his old ally, last year that ended his guaranteed parliamentary majority. A string of corruption cases, a faltering economy and a scandal involving an underage prostitute have taken their toll on the premier, whose support among voters now stands at a record low of 29 percent, according to pollsters IPR. The government's sagging support even among its core northern power base was underscored by the loss of the Milan mayoral seat in local elections last month. That was followed by defeats in referendums on nuclear energy, water privatization and trial immunity for government ministers. (Editing by Louise Ireland) 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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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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