Italy looks set to defuse a row with the EU after weeks of publicly defying officials in Brussels over its high-spending budget plans.
Its leaders wanted to “end poverty”, raising the deficit to 2.4% of GDP.
But in an unprecedented move, the European Commission said they should revise the budget and tackle debt.
Deputy Prime Minister Luigi Di Maio said on Monday his government might be willing to reduce the deficit target to end the standoff.
“If, during the negotiating process, the deficit has to be reduced a bit, that’s not a big deal,” Mr Di Maio said.
Italy’s draft budget contains expensive measures for introducing a guaranteed basic income of about €780 (£700) for poor families, and raising the retirement age.
“The important thing is that not one person misses out on the (pledged) measures,” Mr Di Maio added.
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