EU could fine Italy £3bn for breaking spending and borrowing rules

Italy's debt amounts to 132% and servicing it costs more than annual education budget

The EU is poised to punish Italy over its "snowballing" spending and borrowing, putting Brussels on a collision course with the populist government in Rome.

In a move expected to raise tensions with Italy, the European commission paved the way for an initial fine of as much as a3.5bn (3.1bn) on Wednesday after advising the country had met the threshold for disciplinary action.