EU urges Italy to keep 'responsible' fiscal policy

Brussels  :    Italy needs to maintain "a responsible budget policy", European Commission Vice-President Valdis Dombrovskis said in Brussels on Thursday when asked about campaign pledges to break budget limits that parties like the far-right League made ahead of national elections.

"Especially for Italy, which has the second highest public debt in the European Union after Greece, it is important to keep within the parameters of a responsible budget policy.

"It is important not to create negative expectations on the markets," said Dombrovksis. He is the EU's commissioner for the Euro and social dialogue, also in charge of financial stability, financial services and capital markets union.

The League and the populist Five-Star Movement came out on top in Italy's inconclusive elections last Sunday and both have claimed the right to form a government.

Both parties are eyeing a possible coalition dissidents from the centre-left Democratic Party, which suffered a crushing defeat in Sunday's polls, winning less than 20 percent of ballots amid voter anger over the economy, the EU and immigration.