Germany's finance minister has told CNBC that he can understand some of the reforms that Italy says it wants to spend its budget on.
Italy's populist government is at odds with the European Commission in Brussels after submitting a budget proposal for 2019 that incurs a deficit of 2.4 percent of gross domestic product (GDP). The previous Rome administration had submitted a far less costly 0.8 percent deficit proposal.
For the first time in history, a draft budget proposal from an EU member has been rejected by commissioners, but on Tuesday the German Finance minister, Olaf Scholz, told CNBC's Annette Weisbach that there were some aspects of Italian spending plans that anyone could understand.
Speaking at the SZ Wirtschaftsgipfel Economic Summit in Berlin, Scholz said a complete lack of support for long-term unemployed in Italy was "a bit astonishing" and a change of policy in that area could be considered.
"If they, the Italian government is working on questions like this, we can understand this," said Scholz.
The finance minister cautioned however that in doing this, Italy would also be expected to be very cautious with its budget.
"If you have a very high amount of sovereign debt it is absolutely necessary that you are cautious and this is what the Italian government will have to be," he said.
Italy is expected to resubmit its budget on Tuesday but CNBC has learned that the Italian Finance Minister, Giovanni Tria, won't be meeting with the country's Prime Minister Giuseppe Conte until late in the evening. CNBC has also learnt from sources that the Deputy Prime Ministers Matteo Salvini and Luigi Di Maio will attend that meeting.