The government's free-spending plans prompted a credit downgrade by Moody's on Friday, which cut Italy's sovereign debt rating to one notch above junk status.
Italy was not supposed to be on the agenda at the recent European Union summit in Brussels, but the ongoing impasse has brought it to the fore, with the worry being that the Eurozone's second most indebted nation (after Greece) could cause ructions within the shared currency bloc.
Italy's Prime Minister defended its free-spending budget on Thursday, brushing off criticism from Brussels as the European Commission stepped up pressure over a draft it labelled an unprecedented breach of EU fiscal rules.
"If Brussels says I can not do it, I do not care, I will do it anyway", Salvini said last week, referring to the budget's implementation.
Italy is the third-largest economy in the 19-country euro zone, and a crisis there could unsettle the entire bloc. It marks the start of a process which could culminate in a decision by the Commission to issue a negative opinion next week - essentially rejecting Italy's budget - and asking the Italian government to send it back with revisions. He said he hoped that when Italy explained the structural reforms included in the bill that would bring the two sides' positions closer together.
Reunions dominate Premier League agenda this weekend
He said: "I'm not annoyed with anything". "And, after that, his assistant came to me in Sarri's office, and apologised to me. Wolves entertain Watford, whose bubble has burst spectacularly after winning their first four matches of the season.
Italy's government borrowing rose, with the yield on the benchmark 10-year bond on Friday hitting its highest level since 2013.
"A harsh rebuke and the threat of further measures would likely boost the popularity of the populist coalition government", giving Italy's governing parties "an invaluable narrative to use during the campaign for the European elections in May", Piccoli said.
The fiscal plan has spooked European financial markets.
"It could be a matter of time before the euro falls through the bottom of its range after the EU signalled a thumbs-down to Rome's budget for the coming year", Joe Manimbo of Western Union said.
Deputy Prime Minister Luigi Di Maio, who heads the Five Star Movement, blamed Brussels for the movement, saying in a video posted on his Facebook page that the spread widened "because the markets think that the government is no longer united". The 5-Star movement opposes such a move because it could benefit organized crime or tax cheats hiding money aboard.
The head of one of Italy's two ruling parties says the government won't fall over a dispute on the budget draft, which would offer a tax amnesty to Italians with accounts overseas.
But Salvini, who is also leader of the right-wing League party, said the decree containing the proposal had to stay as it was if they did not want to create a unsafe precedent.