EU-Italy tensions over proposed budget likely to intensify this week

European Union governments' delegates are set to back on Thursday the European Commission's disciplinary move against Italy over its debt, according to two EU sources and a document seen by Reuters.

The move is expected to be approved this week despite signals from Rome that it could tweak its fiscal targets for next year in the direction of EU requirements.

But in a more conciliatory note for Rome, the decision on formally starting disciplinary proceedings could be delayed until February, one official said citing a timeline foreseen under EU rules.

(With inputs from agencies.)