Labor Minister Clemente Mastella said Italy was on the verge of a major political clash and the five-party coalition, riven by months of dispute, could not carry on.
He was speaking on his way to the first cabinet meeting since magistrates informed media tycoon Berlusconi on Tuesday that he was under investigation for alleged corruption.
"The coalition as it stands now no longer exists," Mastella said. "You can't govern with a majority as slim as this."
"We are on the verge of a large-scale political clash, and the situation is becoming more dramatic by the day."
Berlusconi had called for an immediate review of his coalition in a gambit designed to rally support. He threatened to resign and seek new elections if his coalition allies failed to back him.
The step, a test of his partners' loyalty, was rejected out of hand by the federalist Northern League, Berlusconi's largest associate in parliament and his most troublesome partner.
League leader Umberto Bossi said he wanted a coalition review only after parliament has approved the budget, which it must do by the end of the year. That timing would raise pressure on Berlusconi to step down once the budget has passed, as opposition parties have demanded.
"We're not interested in an immediate review. Let the rest of them do it. They already do that anyway every night, round at Berlusconi's house," Bossi said.
Justice Minister Alfredo Biondi said the next cabinet meeting, scheduled for Nov. 29, would be devoted to examining Italy's tense political situation.
He quoted Berlusconi as telling ministers at the cabinet meeting, "It is necessary to maintain coalition bonds."
The political tensions generated by the bombshell Berlusconi inquiry were heightened by an interview in the newspaper La Stampa with deputy prime minister Giuseppe Tatarella, who is also from the National Alliance.
Referring to speculation that an institutional government excluding the hard right could be formed if Berlusconi fell, he signaled that such a step could lead to violence.
"What people don't realize is that if you tell a young man who has renounced the Roman salute, renounced Fascism and accepted democracy that 'you're not allowed to decide the new rule,' you're authorizing him to smash things to pieces," Tatarella was quoted as saying.
Berlusconi has denied all wrongdoing and refused to resign over the probe by Milan's elite pool of "Mani Pulite" (Clean Hands) antigraft magistrates.
They are due to question the billionaire politician this week over allegations that his Fininvest media-to-soccer group bribed tax police in return for easy audits.
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