European Economics Commissioner Pierre Moscovici on Tuesday asked the Italian government to revise its budget proposal, which breaches EU fiscal regulations.

The Commission last week said that Italy’s deficit target of 2.4 per cent in 2019 goes against the EU’s Stability and Growth Pact, and that the budget’s growth forecasts are “unreasonably optimistic”.

Italy’s revised budget plan must be submitted to Brussels within three weeks, the Commission said on Tuesday.

The unprecedented decision to request a resubmission was taken by the 28 commissioners during a meeting in Strasbourg.

European Commission Vice President Valdis Dombrovskis said the EU executive arm had no choice but to reject Italy’s budget plan.

“I’m very sorry to be here today,” Dombrovskis said in a press conference after the meeting.

“But we don’t see any alternatives. Unfortunately, the clarification received yesterday was not convincing.”

Dombrovskis added that the Italian government is “openly and consciously” going against EU values, threatening the entire bloc.

“Europe is built on cooperation,” he affirmed.

“The eurozone is built on close bonds of trust... with rules that are the same for everyone.”

Despite the Commission’s rejection of its budget plan, the Italian government insisted that increased spending is crucial to the nation’s economic growth.

Deputy Prime Minister Matteo Salvini on Tuesday declared that Italy will stick to its budget plan and its initial promises.

“This doesn’t change anything,” he said.

“Let the speculators be reassured, we’re not going back.”

Clashes between Italy and the EU over the budget have sparked concerns that Italy could follow in the footsteps of bailed-out Greece.

Italy is the eurozone’s third-largest economy and the EU member state with the second-largest debt, at 131 per cent, following Greece.

Italian Prime Minister Giuseppe Conte on Tuesday reiterated that Italy will not leave the eurozone.

 “We feel very comfortable, we feel at home in Europe,” he said.

 “The euro is our currency and will be our currency, the currency of my 11-year-old son, and the currency of my grandchildren.”

Conte said the government will evaluate the Commission’s criticisms in the coming days.