Italy's government is already in the market spotlight with investors awaiting details of its 2019 spending plans. The government said last Thursday that it will deliver key populist measures that it promised in the run-up to the election, policies that are expected to increase next year's deficit to 2.4 percent of GDP — three times more than what the previous government had planned.
The deficit figure led to a negative market reaction but also to some angry comments from the European institutions.
Several European finance ministers and policymakers told CNBC's Willem Marx in Luxembourg that there are concerns about the extra spending in Italy, but they are waiting for the final budget document to be published.
Woepke Hoekstra, finance minister of the Netherlands, said that "what we've seen so far isn't particularly reassuring" while European Commission Pierre Moscovici told CNBC's Willem Marx that the 2.4 percent deficit figure is "a very significant deviation from what was committed before."
"I think the Italian government must tell the truth to the Italians, that there is more public expenditure that can make you more popular for a while but then who pays in the end?," Moscovici said Monday.
One of Italy's deputy prime ministers, Luigi di Maio, head of the anti-establishment Five Star Movement (M5S), accused the EU of "creating terrorism on the markets" by deliberately upsetting financial markets with its comments.
Italy has until the 15th of October to finish its 2019 budget plan and submit it to the European Commission for analysis.