Italian premier says confidence needed during economic crisis

ROME, March 9 (Chinese media) -- Italian Premier Silvio Berlusconi said on Monday the global economic crisis is "particularly serious" but can be weathered if businessmen and consumers remain confident.

Although, he said, the crisis "appears to be particularly serious", its duration "depends on our reaction."

"No one would face "poverty" because the government was ready to step in and "help more unfortunate citizens," the premier said at inauguration of new headquarters of the American IT company Cisco Business Systems in Milan.

"On the whole, most families have savings accounts and our banking system is the most solid in Europe," Berlusconi said.

The government has earmarked 150 million euros (about 188.47 million U.S. dollars) to help banking system, "but not a single bank has needed state funding," he said.

While talking consumer spending, Berlusconi said employees were earning more so their purchasing power has not been dented. "There's no reason for consumers to change their spending habits," he said.

A drive by Civil Service Minister Renato Brunetta to increase the presence of staff in public offices has reaped results because absenteeism has plunged 40 percent, said the premier.

"Civil service workers have received bonuses and the drop in gasoline prices has brought down retail prices," Berlusconi said.

Last Friday, Berlusconi accused the media of exaggerating the consequences of the current economic crisis which he said was "certainly severe but not tragic."

"There is no doubt that crisis exists, but media is making it much more dramatic than it really is. One need only look at fact that the plunge on stock markets has been caused by (the performance of) only a handful of stocks," he added.