Tony Blair has hailed the UK's "immensely strong" relationship with Italy.

The prime minister was speaking during a press conference at Lancaster House following talks with Silvio Berlusconi, his Italian counterpart.

The British leader brushed off criticism of the Iraq war, saying that the two governments "believe in what we are doing there".

Blair also paid tribute to the leadership Berlusconi has shown in supporting coalition efforts in Iraq.

On Afghanistan, the prime minister noted that in 2005 Italy will take over leadership of the security force and will then be succeeded by the UK.

And Blair added that both countries would aim to boost industrial cooperation, particularly in the defence sector.

He said they saw closer European defence cooperation as "complimentary to the NATO alliance, not in any sense in conflict with it".

The two governments also agreed to work closely on asylum and immigration issues.

Blair said there should be closer cooperation on immigration issues, including "setting some clear rules that allow us to be more effective".

He added that there had been useful discussions on how to check that immigrants are not potential terrorists.

"There are all areas where we can cooperate together," Blair said. "This relationship is in an immensely strong position today."

And Berlusconi said the relationship was "extremely fruitful", pointing to agreement on the need for the European Commission to cut back on its regulations.

"We are united in our wish that this Commission may reduce bureaucracy in Brussels," the Italian leader said.