European markets fall after Italy's deficit-widening budget plans

Proposals for 2019 put the country on a potential collision course with the EU

Fears that Italy is on a collision course with the EU over its spending plans triggered sharp falls in European markets after the new government in Rome unveiled a deficit-widening budget.

The coalition of the Five Star Movement and the League announced 2019 budget plans late on Thursday that would push the deficit - the gap between income from taxes and expenditure - to three times the size of the spending gap under the previous administration.

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