With its immense debt pile and potential budget blowout, Italy is a risk first and foremost to itself, Valdis Dombrovskis, a vice president at the European Commission told CNBC.
"Fragility in Italy's economy needs to be addressed," Dombrovski told CNBC's Willem Marx in Brussels Wednesday.
"Given the high level of Italy's public debt, and Italy has the highest debt-to-GDP (gross domestic product) ratio in the EU after Greece, it's important that Italy puts its debt-to-GDP ratio on a downwards trajectory. And this is something which we have (been) consistently emphasizing and we think that this is important," he said.
Italy's debt pile of 2.3 trillion euros ($2.6 trillion) is "first and foremost (it's) a risk factor for Italy itself, but one that needs to be addressed," he added.
Italy's 2019 spending plans, that have caused a furor in recent months with the Commission — the EU's executive arm — were one area of particular concern, he noted.
Dombrovskis' comments come as the European Commission cut its forecast for Italy's growth in 2019 to 0.2 percent, from a previous prediction (made last November) of 1.2 percent. In 2020, it predicts Italy's economy will grow 0.8 percent.
The Commission also lowered its prospects for the euro area as a whole. The 19-member bloc is set to grow 1.3 percent this year, from a previous forecast of 1.9 percent.
"The most pronounced slowdown is in Italy, and we have been in difficult discussions in Italy over the last couple of months on how their chosen fiscal trajectory negatively affects growth. Unfortunately we see this materializing in our winter economic forecast," he said.