The European Commission formally put Italy on notice Wednesday for its deteriorating deficit and huge debt, re-opening a battle with populist-led Rome.

The move by the EU’s executive arm against Italy’s bloated budget begins a complicated process that — if approved by eurozone ministers — could result in a fine of more than 3.0 billion euros ($3.4 billion).

“We have concluded that … a debt-based excessive deficit procedure is warranted for Italy,” EU commission vice president Valdis Dombrovskis told reporters, adding that bloc ministers must confirm the decision.

Italy’s far right Deputy Prime Minister Matteo Salvini on Saturday vowed not to yield to the EU, with fears that his fractured government could collapse under the pressure from Brussels.

Source: AFP