The new Italian government proposed the 2019 budget with a deficit three times greater than that of the previous administration, which led to a clash with the European Commission and sparked the sale of government bonds.
Italy has the largest debt burden among the EU's major economies, with 130 percent of GDP. This comes under pressure from the European Union to rein in spending amid fears of a debt crisis in the heart of the euro zone.
The government offered late on Thursday a deficit of 2.4 percent of gross domestic product over the next three years to fund a major expansion in welfare spending, tax cuts and increased investment in infrastructure.
Italy's Economy Minister Giovanni Tria wanted the deficit to reach 1.6 percent next year in hopes of meeting European Union demands that it gradually reduce the financial gap to rein in its debt.
In the wake of that, the euro fell significantly hitting its lowest level since September 12 at 1.1569 against the US dollar, also the euro fell significantly against most rivals.
