Berlusconi: Italy on firm footing to tackle financial woes

Speaking to lawmakers, he said the economic challenges Italy faces need "to be tackled with determination and without panic."

He noted that Italy has a robust political system and strong financial foundations and said Italian banks can deal with the problems ahead. But he also noted "we do not deny we are facing a crisis."

"We need to work together to overcome it."

He said Italy has developed a budget law that has been judged as adequate and sufficient by Europe and by the international observers.

"Our economy is solid," he said. "Our banks are solid. They are well-capitalized. They have liquidity. They have overcome the stress tests."

There have been fears that the debt crisis roiling Greece and Portugal is spreading to the continent's third-largest economy and concerns the Italian government is not as committed to enacting necessary austerity measures, as Greece or other debt-stricken eurozone countries have done. The eurozone consists of the 17 nations whose currency is the euro.

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