Euro zone rescue fund concerned about Italy's free-spending fiscal plans

"We are worried about Italy," Klaus Regling told a news conference, saying that the Italian government's fiscal plans were a risk.

The head of the euro zone's rescue fund said on Tuesday Italy's free-spending fiscal plans were a reason for concern, but added there was no cause for panic as contagion to other European countries had so far been "very limited".

"We are worried about Italy," Klaus Regling told a news conference, saying that the Italian government's fiscal plans were a risk.

But he stressed that the Italian debt problems were different from those of Greece, which needed three eurozone bail-outs over the last decade.