IMF warns Italy not to breach EU spending rules in next budget

Italy's finance minister confirms plans to run a budget deficit of 2.4% of GDP

The International Monetary Fund has thrown its weight behind Brussels in its battle with Italy's coalition government over plans to increase the indebted country's borrowing in its next budget.

The Washington-based lender of last resort, which is holding its annual conference in Bali this week, warned Rome to abide by the EU's financial rulebook or risk a rebellion by investors that could trigger a debt default.

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