ROME, Sept. 29 (Xinhua) -- Italian Prime Minister Silvio Berlusconi said on Tuesday that the conditions existed for the Italian economy to move into a phase of recovery.

    "Our country was able to react better than others to the financial crisis," Berlusconi said in an interview with a local TV station.

    Berlusconi praised his government's actions, in particular the adoption of a three-year budget last year which enabled Italy over the last 12 months to tackle the financial turmoil and the subsequent recession without affecting public finances.

    The country's economic outlook is brighter than a couple of months ago and the mood is changing.

    Last week, Berlusconi's center-right government positively revised its economic forecasts on gross domestic product (GDP), predicting that a 4.8-percent contraction this year would be followed by growth of 0.7 percent in 2010 and 2.0 percent in 2011.

    The premier added that no citizen hurt by the economic downturn "will be left alone" by the government.

    Berlusconi also said Italy is committed to combating financial speculation which reduces consumer buying power, stressing that there was a consensus on the need to stop speculation in regard to primary resources, oil and food.

    Such speculation "cannot be allowed to go on" and the government intends to honor "all commitments made" in this area, he added.

Special Report:  Global Financial Crisis