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According to a report, via the Politico, the European Commission is said to propose disciplining Italy under EU fiscal rules on November 21 “โ€ unless the country’s government agrees to change its draft budget plan.

The report quoted three people involved in the talks, saying that by basing its recommendations on Italy’s enormous debt, rather than its proposed budget deficit for 2019, the Commission will be able to start the potentially punitive proceedings far earlier than expected.

The move is seen further escalating the showdown over the budget between Brussels and the populist government in Italy.