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“Fracture between government and regions”, headlines Corriere della Sera, explaining that the heads of local government are calling a summit meeting with PM Silvio Berlusconi to discuss the depth of budget cuts to be passed by parliament before 14 July. The government has decided that regions can have their say as to how public expenditure can be slashed, but the row is likely to intensify. The extent of cuts envisaged for 2011 and 2012 hits a staggering €8.5 billion.

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