A letter from the EU on Tuesday has sparked concerns that the commission may reject the budget outright and demand a new draft.
“Italy’s plan does not comply with the debt reduction benchmark in 2020,” read the letter signed by EU economics affairs commissioner Pierre Moscovici and commission vice president Valdis Dombrovskis.
Italy submitted its budget on Wednesday, hoping to get Brussels to agree to a deficit of 2.2 per cent of GDP.
However, Brussels said the budget risked delaying the reduction of Rome’s massive debt.
“We will provide all clarifications to the EU, we are not concerned,” Italian Prime Minister Giuseppe Conte said.
“It is a necessary dialogue with Brussels from which we will not escape.”
France, Spain, Belgium and Finland were also sent similar warnings.
