Italy's Prime Minister Silvio Berlusconi lacks the majority needed to pass urgent economic reforms demanded by the EU, says his interior minister ahead of an expected vote on Tuesday.
Roberto Maroni made the comments after MPs once loyal to the Italian PM reportedly urged him to stand down.
But Mr Berlusconi insists he still has the support to continue governing.
Fear that the eurozone crisis could engulf Italy persists with Italian 10-year bonds rising to a euro-era high.
Italy agreed a limited package of budget reforms last week.
But the Italian cabinet failed to agree to issue a decree implementing the changes, meaning that they must now face a confidence vote in parliament on Tuesday.
Shortly after markets opened on Monday, the 10-year outright yield was up 21 bps at 6.59%, creeping closer to the level of 7% which many analysts believe could lead to a so-called "buyers' strike" where investors take fright and refuse to buy.
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It seems to me that there no longer is a majority”
Roberto Maroni
Italian Interior Minister
Berlusconi on the rack
On Sunday, European Central Bank council member Yves Mersch emphasised that the bank would consider ending its purchases of Italian bonds unless Rome delivered on promised reforms.
'No alternatives'
Last week, six former Berlusconi allies urged him to quit after his government failed to agree urgent economic reforms.
Over the weekend, reports continued that those closest to him, including his own party secretary Angelino Alfano, were urging him to stand down.
"According to the latest news, it seems to me that there no longer is a majority," said Mr Maroni, of the Northern League, the main coalition partner.
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If you want to see Italy on the road to ruin, there's no shortage of signposts ”
Robert Peston
Business editor, BBC News
Read Robert's thoughts in full
"The serious problem is within [Mr Berlusconi's] PDL party, either it strengthens its position or we have to recognise that, quite simply, there no longer is a majority," he said, according to the Corriere della Sera newspaper.
He said that the government had made a series of commitments to the European Union which must be respected.
Mr Berlusconi has insisted that he has the support needed to pass the reforms.
"We maintain that there are no alternatives to our government until 2013," when elections are due, he said in an audio address to a political gathering on Sunday, AP reports.
A team from the European Commission is expected to arrive in Rome this week to step up its monitoring of how the government is handling the crisis.
