EU states say disciplinary action over Italy debt is warranted - source

Representatives of European Union governments agreed on Tuesday that an EU disciplinary procedure over Italy's growing debt was justified, an EU official told Reuters, a move that could escalate a fight with Rome over its public finances.

The decision confirms the EU Commission's assessment that Italy is in breach of EU fiscal rules, the official said.

After this first green light from EU states, the commission will have to decide whether to recommend the opening of the procedure, which could lead to financial sanctions for Rome. The ultimate decision to launch the procedure is to be made by EU finance ministers, probably at meetings on July 8-9.