A top EU official on Friday said that Italy's budget plans were going in the right direction despite calls for a major spending boost by the anti-establishment government in Rome.
The European Commission on Tuesday said Italy, France and Portugal were in violation of EU rules on public spending and would be more closely monitored by Brussels.
Christmas spending in Italy is set to rise for the first time in seven years, according to a study published on Wednesday by the retailers' association, Confcommercio.
A probe into a €10 million expenses scam in Sicily has revealed that dozens of MPs and their aides squandered cash on everything from designer underwear and Louis Vuitton bags to coffee capsules and comics.
Italy's economic crisis has cut the spending power of 69 percent of households and forced a growing number of young people to leave the country, a study by the Censis institute released on Friday found.
Italian families will cut spending on Christmas presents this year as they continue to grapple with finances in an economy that's showing little sign of improvement. Reports show that the average Italian family will be spending 11.2 percent less on Christmas presents this year.
The economic crisis and soaring unemployment have forced Italians to spend less and shop more cautiously, replacing fizzy drinks and snacks with homemade produce, according to a study by Italy's chamber of commerce.
The European Commission said on Wednesday it was ready to accept an Italian request to modify the way public deficits are calculated, which would give Rome more leeway in spending while still respecting EU demands to keep the deficit below 3.0 percent of gross domestic product (GDP).
