Tension in Italy government over economy minister

By Philip Pullella

ROME (Reuters) - Tensions in the Italian government that almost led to the resignation of Economy Minister Giulio Tremonti last week resurfaced brusquely on Monday as a party in the ruling coalition said Tremonti should be given more power.

Tremonti was reported to have considered handing in his resignation last Friday to stress his opposition to a plan by Prime Minister Silvio Berlusconi to cut a regional tax.

Tremonti was furious that he was not consulted on the cut before it was announced.

Firebrand Northern League leader Umberto Bossi told reporters on Monday he wanted Tremonti to be named deputy prime minister, a post that does not exist in the current government. Commentators say Berlusconi is loath to give in to the demand.

The Northern League, part of Berlusconi's government, has four cabinet ministers. Although Tremonti, who is from northern Italy, is not one of them, the League has rushed to his defence often because he supports their demands for fiscal federalism.

"Tremonti is a guarantee because he puts the brakes on big spenders in the government," Bossi said on Monday.

Last week Bossi, who caused Berlusconi's first government to collapse in 1994, said he would see to it that Tremonti stay on as economy minister "as long as I am alive".

Because of the League's strong backing of Tremonti, his resignation would spark a crisis within the ruling coalition.