Premier Giuseppe Conte on Thursday told the parties supporting his government that "we must all dare" as he sought to reach a deal within the executive on the so-called 'simplification decree'.
The planned package aims to streamline bureaucratic procedures to help the recovery after the coronavirus emergency and the premier has described as it as "the mother of all reforms".
But the centre-left Democratic Party is reportedly holding back on some points regarding provisional changes to the code for public contracts amid concerns this could aid corruption.
"It's time for courage," Conte said.
"Italy is not willing to take any steps backwards.
"We cannot afford to miss this date with history for Italy. We must all dare.
"We cannot accept the principle of not doing things out of fear of infiltration".
The premier also denied reports of a rift between him and PD leader Nicola Zingaretti after a meeting failed to materialize.
"We were meant to meet yesterday but we didn't manage to and so we postponed it to today," Conte said.
"I was astounded to read about a rift.
"The ruling majority is united. We work together on all fronts every day".
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