Dec. 11 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi threatened to use his veto to block a European Union agreement on carbon-dioxide emissions as Europe’s fourth-biggest economy slips to last among its partners in climate protection.

“Today I have to play the bad guy,” Berlusconi told reporters in Brussels as he arrived to take part in a summit where the 27-nation bloc will try to break a deadlock.

The EU has proposed a target to reduce greenhouse-gas emissions by at least 20 percent by 2020 from 1990 levels. This coincides with United Nations talks on a successor to the Kyoto Protocol, which expires in 2012.

Berlusconi has led attacks on the European Commission’s calculations of what it will cost member states to curb air pollution, demanding a softer package to take into account the recession. Italy has a poor record in cutting emissions of greenhouse gases, slipping to 44th place from 31st in an index compiled by Germanwatch, a non-profit environment watchdog.

Italy has thrown its support behind eight poorer, eastern European nations, led by Poland, which are resisting tougher emission rules. Italy, poised to take over the Group of Seven presidency next year, argues that compliance would cost its economy about 40 percent more than neighboring states such as France, which is seeking an agreement this month.

“Italy and Poland -- the two countries most actively blocking the package -- already have a poor rank, but this might become even worse next year depending upon the final decision made this week,” Germanwatch said in a statement yesterday. The group’s annual Climate Change Performance Index ranks 57 nations that account for 90 percent of global carbon-dioxide emissions.

To contact the reporter on this story: Flavia Krause-Jackson in Rome at fjackson@bloomberg.net

Last Updated: December 11, 2008 09:05 EST