But a row with Gianfranco Fini, ex-leader of the National Alliance that merged with Berlusconi's People of Freedom party last year, fuelled speculation of a split in the ruling group. "I have wooed Fini this week," the billionaire media mogul told reporters, adding that the rift could be healed. "But the government will go ahead even if we cannot get back together."
"Our (parliamentary) majority will survive, the government will continue, we will overcome this."
Fini, regarded as a potential successor to Berlusconi, has bridled at the growing influence of the pro-autonomy Northern League party in the ruling centre-right coalition.
After winning its first two governorships at last month's regional elections, the League adopted a more assertive tone, calling for greater influence over the north's powerful banking foundations and a swift implementation of fiscal federalism. In a tense meeting on Thursday, Fini asked Berlusconi whether he was committed to the PDL or preferred to focus on relations with the League, political sources said.
After a turbulent week, Berlusconi attempted to return the political focus to promised reforms which he says have been stalled by Italy's worst economic downturn since World War II.
"Within two years we will finalise a single tax code which will allow us to eliminate the thousands of laws which create so much confusion," said Berlusconi, who faces two court cases for tax fraud and bribery. Several trials against him in the past have failed to obtain a conviction.
"Even companies which hire top tax advisors find themselves under the scrutiny of the tax authorities and even on trial when they were convinced they hadn't broken the law," he said.
Berlusconi also promised tax cuts once the economy returned to growth, including the progressive elimination of a regional business tax. Italy's 1.5 trillion euro ($2 trillion) economy is forecast to grow around 1 percent this year, after a record 5 percent contraction in 2009.
