Italian government teeters ahead of key euro summit

Berlusconi will attend a summit of European leaders in Brussels WednesdayHe is under pressure to agree to economic reforms before the summitThe main partner in his coalition government opposes pension changesItaly's high debt and low growth have sparked concerns
Rome (CNN) -- Italian Prime Minister Silvio Berlusconi's government is at risk of collapse over economic reforms demanded by Europe, ministers told reporters Tuesday.
European leaders have pressed Italy, which is among a handful of European nations at the center of a debt crisis, to agree to reforms before heads of government from all 27 members of the European Union meet Wednesday in Brussels.
But the Northern League party, which is a key partner in Berlusconi's coalition government, has rejected pension reform proposals put forward by Berlusconi to raise the country's retirement age by two years to 67.
Northern League leader and minister for reform Umberto Bossi told reporters there is "room for negotiations" but acknowledged that the government could fall.
"'It's a dramatic moment. That is how I would describe it,'" Bossi said.
Asked why his party opposes Berlusconi's proposals, he replied: "'We cannot raise the pension age to 67. They would kill themselves."
Infrastructure Minister Altero Matteoli also recognized there is a danger Berlusconi's center-right government could fall, in comments broadcast by Italian media.
President Giorgio Napolitano called for the reforms to be delivered Tuesday, ahead of Wednesday's summit, in a communique from the presidential palace.
Berlusconi, who will go to Brussels Wednesday, is expected to issue a letter later outlining his government's plans for economic reform to stimulate growth, as requested by the EU and European Central Bank .
The latest meeting of leaders follows a summit at the weekend at which France's Nicolas Sarkozy and Germany's Angela Merkel accused Berlusconi of doing too little to cut spending and boost Italy's sluggish economy.
EU politicians said Tuesday they are making progress on a comprehensive plan to tackle the eurozone's debt and banking crisis.
They have promised to deliver an ambitious and durable solution to a crisis that poses the biggest threat to the euro since the common currency was launched over a decade ago, but the details have not yet been spelled out.
The latest talks have focused on a three challenges: restructuring the Greek government's crushing debt load, strengthening European banks and boosting the effectiveness of a limited rescue fund.
Italy, the 17-nation eurozone's third largest economy, has one of the largest bond markets in the world, worth an estimated 2 trillion euros (about US$2.8 trillion).
And while Italy is in much better shape than Greece, the Italian economy has been ailing for years and the nation has debts equal to about 150% of its economic output.
It passed a package of austerity measures last month, including tax increases, but some economists fear that without further reforms its debts could become overwhelming -- and there would not be enough money in the European rescue fund to bail it out.
Many Italian newspapers ran editorials Tuesday describing this as one of Berlusconi's worst political crises since he took office in May 2008.
The prime minister won a vote of confidence in the lower house of parliament by a slim 15-vote margin earlier this month. It was prompted by unhappiness over his handling of the economy and a series of personal scandals.
CNN's Hada Messia contributed to this report.
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Argentine president leads ahead of poll

Argentina's economy moving forwardPolls are expected to open early SundayCristina Fernandez de Kirchner is the undisputed front-runnerShe needs 45% of the vote, or at least 40% and a 10-point lead, to win outright
Buenos Aires (CNN) -- Argentine President Cristina Fernandez de Kirchner is expected to win re-election in a landslide on Sunday.
Opinion polls say the current leader is likely to win outright with more than 50% of the vote. She needs 45%, or at least 40% and a 10-point lead, over her nearest rival to avoid a runoff.
Among her closest competitors are Hermes Binner, Ricardo Alfonsin and Eduardo Duhalde.
Binner, a Socialist governor from Santa Fe, has gained in polls since a primary election in August, but still trails Fernandez by more than 35 points.
The current president, a center-left member of the Peronist party, handily won the primary. Fernandez garnered more than half the country's votes, making her the undisputed front-runner going into Sunday's election.
Alfonsin is a member of the opposition Radical Party and the son of the late Raul Alfonsin, who became Argentina's president in 1983 following seven years of military dictatorship.
Duhalde is a long-time Peronist party leader who ruled Argentina from 2002 to 2003 in the wake of the country's $95 billion debt default, which ushered in historically high levels of crime, unemployment and poverty.
He was succeeded in May 2003 by Nestor Kirchner, a relatively unknown governor from Patagonia who championed human rights causes and implemented unorthodox financial policies that many credit with helping to bring the Argentine economy back from the brink.
In 2007, Kirchner stepped aside so his wife, Fernandez, could run. She was elected with 45% of the vote, becoming Argentina's first elected female president.
Under Fernandez's leadership, Argentina's economy has enjoyed sustained growth of about 8% annually. The president points to this expansion and a low debt load as examples of how Argentina is well-positioned to weather the uncertainty in the current global markets.
In an August speech, the president said strong economic growth and human rights advances are key to her past and future mandates.
"Strength Argentina! Forward Argentina! We will continue growing, with social inclusion, with justice, memory and truth," she said.
However, her critics contend the economy is only booming because of high commodity prices and have repeatedly accused her government of tampering with economic statistics. Argentina's official annual inflation rate is around 9%, but most analysts and consumers suspect it is really three times that number.
Kirchner died suddenly from a heart attack in October 2010, and Fernandez has benefited politically from an outpouring of sympathy. Over the past year, she has worn only black in public, and repeatedly refers to "him" in fiery -- and sometimes teary -- campaign speeches.
Voting is obligatory in Argentina and some 28 million people are eligible to vote in Sunday's election.
If re-elected for another four years, Fernandez, 58, has said her second presidential term will be dedicated to her late husband's memory.
If she does not win Sunday's election outright, she will face a runoff vote on November 20.
CNN's Brian Byrnes contributed to this report.
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