Italy reacts angrily to Merkel demands on budget reforms

Italy reacted angrily yesterday to demands from German chancellor Angela Merkel that it enact more reforms to bring its 2015 budget in line with EU fiscal rules, saying Dr Merkel's time would be better spent resolving economic problems at home.

Dr Merkel had called on Italy and France to enact additional measures ahead of a March ruling by the European Commission on whether their budgets conform with the bloc's deficit and debt rules.

Unless further steps are taken by the new deadline, the commission could fine France for falling short of its deficit-cutting obligations and put Italy under a disciplinary process because of its debt levels.

“The commission has made clear that what has been put on the table so far is insufficient. I would agree with this,” Dr Merkel said.

A senior Italian official said it was "regrettable" that Dr Merkel viewed the reforms introduced by Italian prime minister Matteo Renzi as lacking.

"The Italian government has never permitted itself to hand out marks to a European Union member country and we ask Germany for the same respect," said Sandro Gozi, Italian undersecretary for EU affairs.