Italy's financial turmoil is "self-made" and would not have arisen if the government had complied with EU recommendations, a leading European think thank has told CNBC.
Speaking to CNBC's Joumanna Bercetche on Tuesday, Daniel Gros, director of the Centre for European Policy Studies, said Italian politicians had made decisions that set Italy on the wrong path.
"Six months ago Italy looked fine," he said. "If the new government had done nothing, then Italy would be on a nice path with low interest rates (and a) debt level which goes down."
Rancour between Rome and Brussels has grown in recent weeks after a controversial draft Italian budget for 2019 proposed a deficit equal to 2.4 percent of the country's annual output. A previous Italian administration had promised a deficit goal of just 0.8 percent of GDP (gross domestic product).
Gros also speculated that Italy would continue to rebel against European Union's rules, but would eventually have no choice but to comply.
"Everybody is telling Italy: 'These rules might be tough in the short run, but in the end they deliver growth – stick to them.' And it's up to the Italians to listen," he told CNBC.
"They will not listen to European rules because they said our votes, our people are more important than European rules and these European bureaucrats. But they forget that the other people out there, people in the markets, have to give their government the money to spend what they want to."