One of the European Commission's roles is to set budget targets for countries based on their deficit reduction programs. Since the onset of the European debt crisis, Eurozone governments have tended to abide by the commission's tighter fiscal rules. But Italy's populist government seem to have different ideas this year. Mariam Zaidi has more.

Italy's populist coalition are poised to unveil a budget that flies in the face of EU spending rules. Government debt may be near to 132% of GDP but Italy wants to increase its budget deficit over the next three years to make good on election promises to cut taxes, increase pensions and create better social welfare. Those budget proposals haven't gone down well in Brussels. The EU Commission have called them a serious source of concern. And the war of words is heating up on both sides.

MATTEO SALVINI ITALIAN INTERIOR MINISTER "Europe's enemies are those who are entrenched in the bunker that is Brussels. The enemies of Europe and the European people are Juncker and Moscovici, who have brought insecurity and fear to Europe and who refuse to give up their seats."

But a Brussels based economist says the populist government's plans could backfire and wreck their already fragile economy. Their fiscal deficit may be low but they haven't saved enough to cope with spiralling debt.

MARIA DEMERTZIS DEPUTY DIRECTOR, BRUEGEL THINK TANK "There is no premium for waiting. You need to attack the problem now. So they (Italy) have very little fiscal space to expand the economy. If we don't follow the rule book it seriously compromises the EU Commission. Not just vis a vis Italy but the entire EU."

But others disagree, saying that Italy needs to stimulate its economy and find growth again after years of austerity.

BRUNO COLMANT ECONOMIST, BANK DEGROOF PETERCAM "Today the South of Europe feels the victim of the North and today the unemployment that the South is still suffering from today. It has been the price to pay to keep the Euro as the single currency. So I think the reaction from Italy was totally expected."

MARIAM ZAIDI BRUSSELS "Is confrontation coming? Rome is set to submit its draft budget to the EU Commission by October 15th. If that proves not to be in line with EU rules, financial recriminations could come. But collective rules and obligations go to the very heart of the EU and should they not be followed, it may damage the EU's credibility. Mariam Zaidi, CGTN Brussels."