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Brussels rejects Italy budget: 'Italy's populist government want a big showdown'

The EU has taken the first steps towards imposing fines on Italy, after decreeing that its draft budget violates the block's fiscal rules. The EU Commision's vice-president has said that there is a risk of Italy sleepwalking into instability. Rome continues to insist that it is not prepared to make any changes. Italy's debt is proportionally the second highest in the eurozone, after Greece.

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