No signs of contagion at this stage from Italy's woes: Pierre Moscovici

The European Commission rejected Italy's draft 2019 budget earlier this week for breaking EU rules on public spending and asked Rome to submit a new one within three weeks or face disciplinary action.

European Economic Affairs Commissioner Pierre Moscovici said on Friday that he saw no signs of any contagion at this stage from problems over Italy's economic and political situation.

"We are not in the process of creating the next crisis," Moscovici told French TV station CNews.

The European Commission rejected Italy's draft 2019 budget earlier this week for breaking EU rules on public spending and asked Rome to submit a new one within three weeks or face disciplinary action.

Moscovici added he was having "constructive and firm" dialogues over the Italian situation, and that the broader European economy was not in crisis.