Italy is discussing with the European Commission how it can allay Brussels' concerns over its 2017 budget and avoid emergency belt-tightening measures that could crimp growth, an Italian Treasury official said.
The comments come after la Repubblica newspaper reported today that the commission is ready to open an excessive-deficit procedure against Rome unless it commits by February 1 to cutting its deficit by an extra €3.4 billion this year.
The Treasury official, who asked not to be named, said Rome and the commission were "assessing the opportune steps" to avoid being put on the commission's black list, while avoiding "restrictive budget measures".
Rome has not received any formal letter from the commission, the official added.