Italy faces €3.5bn EU fine

The European Commission is understood to be considering proposing a disciplinary procedure for Italy next week over its failure to rein in debt, which could pave the way for a €3.5bn penalty.

The step could come as part of the EU’s regular budget monitoring process, most likely on June 5, and would mark an escalation of Rome’s budget tussle with Brussels that roiled markets at the end of 2018.