Brussels has rejected the 2019 budget, saying it will not lower Italy's large public debt as European Union rules require, and has called on Rome to make changes to prevent a disciplinary procedure that could eventually lead to fines.
Italy says its draft fiscal plan -- in which the deficit is forecast to rise to 2.4 percent of output in 2019 from 1.8 percent this year -- is needed to revive a fading economy, but it is seeking a compromise deal with the European Commission.
"The (EU) infringement procedure is not good for the country. Both Italy and Europe must do everything to avoid it," Giancarlo Giorgetti, who is cabinet undersecretary and a senior figure in the ruling coalition's League party, told Radio 24.
However, he said not all the 16 billion euros ($18.2 billion) earmarked for the two projects would be needed. "I don't know if we will manage to remove 2 billion from each provision, but maybe we will get close to that," Giorgetti said. (Writing by Crispian Balmer, Editing by Angus MacSwan)
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