UK and Italy in new alliance

UK - UK Prime Minister Tony Blair and his Italian counterpart Silvio Berlusconi have agreed in principle on a common position for lifting regulations on European labour and energy markets during a summit in Rome.

This first formal bilateral meeting between Mr Blair and the Italian leader and billionaire tycoon has led to speculation about the creation of a new alliance in the European Union.

A commentator said says Britain and Italy appear to be consciously forming a partnership, with Spain, to

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