European Commission VP warns of 'fragile situation' over Italy budget

European Commission Vice-President Jyrki Katainen urged Italy on Thursday to submit a draft budget that was in line with its previous commitments and warned of risks for Italy and other eurozone states.

"The situation is very fragile," he told reporters when asked about Italy's budgetary plans and initially negative market reactions.

He added that no one wanted financial instability that could hit Italy and other eurozone countries "that may suffer from contagion risks".