Italy's upper-house Senate on Tuesday gave an initial green light to a contested reform allowing regions to win more powers, a move critics say could exacerbate the historic divide between the country's wealthy north and poorer south, Paralel.Az reports citing Reuters.

The law is a flagship proposal of the co-governing League of Deputy Prime Minister Matteo Salvini, who has seen his popularity slide and is keen to regain it in the party's traditional northern heartlands.

The bill, which will also need approval from the lower-house Chamber, was passed by a 110-64 vote. It enables regions to claim broader powers on key public services such as health and education, and have a bigger say on how taxes are spent.

"It is an important step towards a more modern and efficient country," Salvini said, hailing the Senate's approval.

The reform faces strong criticism from opposition parties, which argue that it risks further widening the wealth gap between the north and the south, an issue that has dogged Italy since the country was unified in 1861.