Local media reports claim the general election will be held on March 4, meaning the parliament will have to be dissolved between Christmas and the new year, according to Corriere Della Serra.
A senior official in the ruling Democratic Party (PD) said this was the most likely date for the vote, according to the Financial Times.
The PD faces a high probability of defeat in the coming elections in a major headache for the EU.
The rise of eurosceptic centre-right party Forza Italia, led by former prime minister Silvio Berlusconi, could spell disaster for the EU as Italy backs away from the block.
In Sicily’s local elections in November, Forza Italia claimed victory, while the populist Five Star Movement (MS5) took second place.
The result shows euroscepticism remains rife in southern Italy.
While in the north of the country, the increasing popularly of Lega Nord, another eurosceptic party that has campaigned for greater regional autonomy, could also be a threat to the EU.
Italy certainly has frustrations with the EU after Milan’s bid to host the European Medicines Agency was defeated.
Tensions are running high after Milan lost out in the bid to host the lucrative agency which was instead given to Amsterdam.
The final decision was made by drawing straws after the two cities were tied in member votes.
Italian officials blasted EU bosses over the decision which is said to have cost the nation £1.5billion.
But European Parliament president Antonio Tajani, who himself is Italian, warned Rome not to criticise the EMA decision and said the nation has little say in the running of Brussels.
The country has also been revealed to be secretly hatching plans to sideline the euro and set up a parallel currency.
In a move that will spark fears across the EU of “Italeave”, three of the country’s political parties are backing the introduction of “Fiscal Credit Certificates” as an alternative to the euro.
The complex plan has the approval of the European Central Bank.
Among the parties backing it is Silvio Berlosconi’s Forza Italia, which has enjoyed an astonishing comeback in the polls.
Anyone can use the certificates, known as CCFs, to pay taxes, buy government services, or exchanger goods or euros.
According to a report by global analyst GEFIRA, “It is highly likely that commercial operators, such as shops, will accept CCFs as an alternative to the euro.
“They can be used as a parallel currency.”
Silvio Berlusconi, who could be set to make a spectacular political comeback in the 2018 election, has also backed reintroducing the Lira in Italy.
Independent MEP Diane James said: “If Italy does manage to leave the single currency, it is only a matter of time until it formally leaves the EU and the whole house of cards comes crashing down.”