Rome (CNN) -- Italian Premier Silvio Berlusconi expressed confidence Wednesday in Italy's ability to confront the financial anxieties shadowing Italy and rest of the continent.
Speaking to lawmakers, he said the economic challenges Italy faces need "to be tackled with determination and without panic."
He noted that Italy has a robust political system and strong financial foundations and said Italian banks can deal with the problems ahead. But he also noted "we do not deny we are facing a crisis."
"We need to work together to overcome it."
He said Italy has developed a budget law that has been judged as adequate and sufficient by Europe and by the international observers.
"Our economy is solid," he said. "Our banks are solid. They are well-capitalized. They have liquidity. They have overcome the stress tests."
There have been fears that the debt crisis roiling Greece and Portugal is spreading to the continent's third-largest economy and concerns the Italian government is not as committed to enacting necessary austerity measures, as Greece or other debt-stricken eurozone countries have done. The eurozone consists of the 17 nations whose currency is the euro.
While the economy is strong, Berlusconi said, much has to be done by all sectors of society.
"We all have the duty to roll up our sleeves," he said.
He praised his government provisions for dealing with the crisis and said that the Italian "family" and industrial debt is among the lowest in Europe.
"Our government will continue to rule and will continue to push forward reforms ... that will push forward economic growth," he said.
Berlusconi said that his government reached an agreement for the opening of a government fund of 7.4 billion euros "for 130 interventions that will relaunch the economy" in the country's south.
Berlusconi got a round of applause when he announced the appointment of a commission to study ways to cut politician spending, including the salaries of regional politicians, which "are the highest in Europe."
He made a strong appeal to the opposition to work with the government for the sake of political stability.
"We've accomplished a lot but we are aware that there is still a lot to do' in dealing with the Italian public debt.
Berlusconi spoke after Italy's economy minister, Giulio Tremonti, met with the eurozone chief, Jean-Claude Juncker, to discuss concerns about the country's debt.
Both men said the sit-down was "fruitful," the Italian news agency ANSA reported.
Tremonti met in Luxembourg with Juncker, the president of the Euro Group and the prime minister of Luxembourg. The Euro Group comprises the finance ministers of the eurozone nations.
ANSA also reported Tremonti spoke by phone with Olli Rehn, the European commissioner responsible for European economic and financial affairs, before meeting with Juncker.
Rehn is reported to have reiterated the European Union's full confidence in the measures Italy has taken to deal with its financial problems, including an austerity budget adjustment that should put Italy on track to balance its budget by 2014, ANSA reported.
CNN's Hada Messia contributed to this report.
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