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EC official urges Italy to maintain a 'responsible' budget policy

A top European Commission official urged Italy to maintain a responsible budget policy and avoid sending negative messages to markets after elections in the country produced a hung parliament, Reuters reported.

Valdis Dombrovskis, the European Commission's vice president who is responsible for the euro, said that Brussels expects Italy to meet its budget deficit targets. "Especially for Italy, a country that has the second-highest debt-to-GDP ratio after Greece in the EU, it's important to stay on course as regards responsible fiscal policies," Dombrovskis said in a news conference.

"Market discipline also may play a role here, but it's important of course not to create any adverse expectations for the market, and that's why the signaling of staying on course as regards to fiscal policy is also important," he added.

The Populist Five-Star movement came out on top of the March 4 polls, paving the way for a potential government with euroskeptic views. Nonetheless, Dombrovskis expressed optimism about the next government in Rome.

"We must be very confident in [Italian President Sergio] Mattarella's ability to discuss everything with the parties and to facilitate the formation of a stable government that I am sure will allow Italy to confirm its European commitment and its position in the heart of Europe."