The European Commission is considering proposing a disciplinary procedure for Italy next week over its failure to rein in debt, which could pave the way for a 3.5 billion-euro ($4 billion) penalty, according to an official familiar with the matter.
The step could come as part of the European Union’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. The official asked not to be named, as the decision hasn’t been finalized, while an Italian finance ministry spokeswoman declined to comment.
