Premier Silvio Berlusconi has said after surviving a confidence vote that it would be "folly" for him to quit two years ahead of term because instability would leave the country prey to financial speculators.

The Italian premier won the confidence vote Tuesday in the lower Chamber of Deputies, his first test in parliament following two recent stinging electoral defeats and demands by his key coalition partner for an end to Italy's involvement in the Libya military campaign.

Berlusconi has insisted in a speech to the Senate that there is no alternative to his partnership with the Northern League, his coalition ally that opposes Italy's involvement in NATO's operations in Libya and is demanding lower taxes for workers.

Berlusconi promised to lay out tax reform proposals this summer.