Separatist ally warns Italy's Berlusconi on reform

ROME (Reuters) - A junior partner in Silvio Berlusconi's victorious election bloc said in remarks published on Tuesday that Italy's next government must overhaul tax laws and crack down on illegal immigration or risk its anger.

The separatist Northern League won about 8 percent of votes to become the third-largest party in both houses of parliament, making its support vital to the conservative leader's plans.

"Now we need to do reforms, or we will lose our patience," party leader Umberto Bossi told La Stampa newspaper.

He denied Berlusconi would be held hostage by his party, but said the government must make changes so that regions that pay high taxes also receive a large share of the proceeds -- a move favoring Bossi's home base in the industrial north.

"It's unthinkable that all the money always ends up in Rome," said Bossi, whose party wants to declare the rich north a sovereign republic independent of Rome.

"We need to put an end to mayors from the north coming to Rome cap in hand as if asking for charity every time."

Bossi, who once suggested shooting at illegal migrants from Africa arriving on Italy's southern shores, said a new law on immigration must be passed soon.

"People want this country to remain theirs," he said. "We don't want illegal immigrants without work here who do nothing."

Political analysts and newspaper commentators say the Northern League's protectionist stance could complicate efforts by Berlusconi to push through reforms to revive the economy.

(Writing by Deepa Babington; Editing by Timothy Heritage)