Although Prodi survived this first test, the tension revealed cracks in his coalition whose parties range from the center to the hard left.

A junior government party, Italy of Values, threatened to vote against Prodi in protest at his decision not to appoint a cabinet minister in charge of the interests of Italians abroad. It withdrew the threat at the last moment.

Prodi would probably have survived such a desertion, but even the talk of it just two days after becoming prime minister was a bad omen for future votes where he will have to rely on coalition loyalty to get legislation past a hostile opposition.

In his Senate speech, Prodi reiterated Italy would withdraw its more than 2,000 troops from

Iraq before the end of the year, but stressed he would still pursue a close relationship with the United States in fighting terrorism.

Berlusconi prided himself on his close relationship with

President George W. Bush, whereas Prodi is keen to see Italy work closer with the

European Union on foreign policy. But the new prime minister said he had good relations with Washington.

"As president of the (European) Commission, I constructed, together with the United States, a network of new, strong, serious, transparent relations for the fight against terrorism."

An Italian general in Iraq, Natalino Madeddu, was quoted in Friday's Corriere della Sera daily as saying it was "reasonable" to consider a pullout in 60-80 days.

Prodi will face tougher tasks at home, where the economy has stagnated in two of the last three years and the budget deficit remains stubbornly above the EU limit of 3 percent of gross domestic product.