EU expected to seek revision of Italy's draft budget

Unprecedented move likely after government insists it needs to increase deficit

The European commission is expected to ask Italy's indebted government to revise its 2019 draft budget, the first time such a request will have been made of an EU member state.

Italy refused to compromise on its economic targets, sending a letter to Brussels on Monday explaining why it will raise its deficit - the gap between government spending and income - to 2.4% of GDP. The prime minister, Giuseppe Conte, told reporters in Rome that the government was not being led by "a bunch of hotheads" and that the increased borrowing was needed to ensure that Italy's economy grows.