Prodi Throws Down Budget Gauntlet

The announcement came only hours before Prime Minister Romano Prodi was due to meet party allies yesterday in a last-ditch effort to convince the Communist Refoundation party to accept cuts in pensions and health spending in the budget.

The summit of leaders of parties in the centre-left government and Refoundation chief Fausto Bertinotti had been due to take place on Wednesday but was put back for 24 hours while a flurry of behind-the-scenes talks continued.