Italy tells German bankers back off

The battle to allow EU governments more say over their national budgets came out into the open with the Italian prime minister telling the head of Germany’s central bank to mind his own business.

Matteo Renzi, effectively leading the left-leaning governments in the EU, said that they had agreed to support Jean-Claude Juncker as European Commission president in exchange for greater flexibility in the stability and growth pact.

“There is no stability without growth,” he said, emphasising that both were needed and that last week’s agreement between the 28 member state leaders stressed this.