Washington- US President George W Bush and Italian Prime Minister Silvio Berlusconi met on Monday vowing to take steps to prevent broader economic fallout caused by the financial crisis and to ensure US and European government continue to cooperate.

Rome- Italy's government approved Monday a decree containing measures to shield the country's banks, Economy Minister Giulio Tremonti said, adding that the cost of the aid cannot be quantified at this stage.

Tremonti said the country's central Bank of Italy would evaluate struggling banks "case-by-case" and then possibly recommend government intervention, which in extreme situations could involve placing a bank under state administration.

The state would also guarantee for a period of five years debts incurred by Italian banks up until December 31 2009, Tremonti said.

Rome - Italian groups representing the families of victims of the terrorism that bloodied the country during the 1970s and 1980s have condemned France's decision not to extradite a former member of the Red Brigades.

The office of French President Nicolas Sarkozy said over the weekend that convicted murderer Marina Petrella would not be extradited to Italy.

The decision reversed a pledge by Sarkozy that France would no longer grant asylum to members of the Red Brigades and under extremist groups involved in urban guerilla violence during Italy's so-called "years of lead".

Rome  - Italian police arrested five men Monday - including the mayors of two towns - in raids targeting attempts by the Calabrian mafia, the 'Ngrangheta, to infiltrate local goverment.

The suspended mayor of the southern port city of Gioia Tauro, Giorgio Dal Torrione, his deputy, Rosario Schiavone, and Carlo Martelli, the mayor of another Calabrian town, Rosarno, were taken into custody in the morning bust.

Milan, Italy - The Milan Bourse's benchmark S&P/MIB Index, fell 6.65 per cent to 20,415 at 10:20 am (820 GMT) on Friday.

Venice, Italy - A raging debate over an ultra-modern bridge spanning Venice's Grand Canal was further fuelled Thursday with allegations that the structure's handrail has the potential to become "scorching" hot.

Venice's Order of Engineers met Thursday to discuss infrastructure projects in the lagoon city, including the controversial steel-and- glass bridge designed by Spanish architect, Santiago Calatrava.