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Italy's Salvini determined to challenge EU rules; EC weighs disciplinary action

Italian Deputy Prime Minister Matteo Salvini said his party's performance in the European parliamentary elections reflects public support for tax cuts and changes to the EU's budgetary rules, Reuters and Bloomberg News reported.

Salvini said the far-right League party's victory meant that Italian voters wanted the government to reopen discussion of "the parameters that led to unprecedented job instability, unemployment and anxiety" in the country, Bloomberg News reported.

He said the 2020 budget would fuel "a positive fiscal shock," having previously hinted at the willingness to breach the EU's fiscal rules to curb unemployment. In the days leading up to the election, he said, the government will spend as much as needed, even if that raises tensions with Brussels.

The European Commission is weighing a disciplinary action that could eventually cost Italy up to €3.5 billion over the country's failure to reduce debt levels, Bloomberg News reported separately, citing a source.

Yields on 10-year Italian bonds were up 5 basis points to 2.703% as of 6:30 p.m. Central European Summer Time.

Results show that League secured 34.3% of the vote, followed by the center-left Democratic Party with 22.7%. The anti-establishment 5-Star Movement, League's coalition partner that makes up the national government, came in third with 17.1%.

Salvini dismissed talks of a coalition reshuffle in the wake of the results, while Italy Deputy Prime Minister and Five Star chief Luigi Di Maio said his party did not demand his resignation, Reuters reported.