Italy's ruling coalition is willing to keep the country's public deficit below 2% of its gross domestic product (GDP) next year, a government source said after a meeting at the prime minister's office over the budget late on Monday.
The government, made up of the anti-establishment 5-Star Movement and the League party, must present its budget targets this week.
"The idea to remain below the psychological threshold of 2% is prevailing," the source said.
Another source said that during the meeting, Economy Minister Giovanni Tria, an academic who does not belong to either of the ruling parties, insisted on setting a 2019 deficit target of 1.6%, while 5-Star and League ministers pushed for hiking the deficit above 2%.
The prime minister's spokesman warned last week that 5-Star would sack Treasury officials in a "mega-vendetta" unless they found the resources needed for welfare spending. Tria attended Monday's meeting flanked by his ministry's three top officials, the sources said.