An arson attack on a Gypsy camp in Rome reopened Italy's debate on xenophobia yesterday as the Government of Silvio Berlusconi passed a decree to take tougher measures on street crime and illegal immigration.

Witnesses at the camp at Via Condoni, in the city's southwest suburbs, said that petrol bombs had been thrown from three cars, causing an extensive blaze. Gianni Alemanno, the new right-wing Mayor of Rome, visited the ruins of the camp yesterday and said that although his aim was to dismantle the camps and resettle their occupants, vigilante attacks were unacceptable and those responsible would be “severely punished” if caught.

Plans to fingerprint all Roma Gypsies, including children, have caused such an outcry that they appear to have been put on hold or scaled down. The idea has been condemned by the EU, Unicef, the Council of Europe and Amnesty International.

Roberto Maroni, the Interior Minister, denied that the scheme had been shelved altogether. Under a draft law going through Parliament, all Italians and foreign residents would be fingerprinted for new ID cards due to be introduced in 2010 - a move designed to counter accusations of ethnic discrimination. It is unclear if this will apply to children as well as adults.

The Italian Red Cross, which is carrying out a census of Roma gypsies, said that although some fingerprinting had been carried out in Naples and Milan, none had yet been taken in the capital, where the census began this week after a two-week delay.

The Government maintains that the census will cut crime, stop children from being used for begging or theft and help to identify illegal immigrants for expulsion.

Yesterday the Senate approved a package laying down increased penalties for illegal immigrants and for EU citizens without residency permits or jobs, with immediate expulsion for those who commit crimes. Three thousand troops are to patrol city streets alongside police, with extra powers for police chiefs to ensure “public safety”.

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