EU hits back at Italy in budget CLASH – Moscovici tells Salvini ‘I am NOT Santa Claus!’

“We can talk about it in a year, but I say no to prejudices.

“We believe in this move, I don’t judge on other country’s policies.”

This outburst was not welcomed by Mr Moscovici, who has been involved in first person in the talks between Rome and Brussels.

Speaking to Italian daily Corriere Della Sera, he said: “The opinion of the Commission is a vital moment in the approval of treaties. 

“I didn’t put on a red dress or a white beard and I am not Santa Claus, I am the Commissioner to Economic and Financial Affairs and I believe we should treat these problems with mutual respect, seriousness and dignity rather than with nonchalance and irony.

“This is important to Italian and European citizens.

“Let’s get to work on this because there is a lot to do about this situation that no one wanted – surely not us.

“The dialogue is not an option, is absolutely necessary.” 

On Wednesday, the European Commission took the first step towards disciplining Italy over its expansionary 2019 budget as Rome refused to change it.

If Italy keeps disregarding the EU’s warnings, it will receive a fine.

The Commission said the Italian draft increased the 2019 structural deficit, which excludes one-offs and business cycle swings, by 1 percent of gross domestic product (GDP) rather than cut it by 0.6 percent as required by EU laws.

‘s GDP amounted to £1.510trillion. 

The commission added the country would also not be able to cut down its debt in “a particularly serious case of non-compliance” with the rules if it doesn’t change its manoeuvre.

Italy’s debt, at 131 percent of GDP (£2.03trillion), is proportionally the second highest in the eurozone after the one of Greece.

However, the Italian government said the budget expansion is needed to boost the economic growth of the country.

Luigi Di Maio, Mr ’s coalition partner and co-deputy prime minister, also said Rome won’t change its manoeuvre, adding many European countries would have reasons to change the “rules of the game” in Europe thereafter.

Additional reporting by Monika Pallenberg.