EU and Italy should foster mutual trust on budget talks: Angela Merkel

"Merkel lent support to Conte to begin a positive dialogue with European partners on the budget," the source said.

Italy and the European Union should avoid acting unilaterally in talks about Rome's budget and build trust, Germany's Chancellor Angela Merkel told Italy's Prime Minister Giuseppe Conte in a meeting on Wednesday, according to an Italian official.

"Merkel lent support to Conte to begin a positive dialogue with European partners on the budget," the source said.

"Merkel told Conte that at this stage it would be better to foster mutual trust, which is a key condition to favour dialogue," the official added.