ROME - Italy’s finance minister Giovanni Tria is facing increased pressure from populist members of his cabinet over government spending, official sources said on Monday.

 On Thursday Tria will formally present targets for the countries borrowing and growth, an announcement that will be carefully examined by Brussels officials and investors.

 Italy’s interior minister Matteo Salvini and minister for economic development Luigi Di Maio are putting Tria under increased pressure to make room for costly policies such as basic income and the introduction of a flat tax system.

 In a recording leaked to the press, the spokesman of the prime minister Conte, Rocco Casalino, is heard warning a “mega vendetta” if technocrat Tria doesn’t approve the populist government spending plan.

 “If in the end they say to us ‘we couldn’t find the money’ then we must dedicate the whole of 2019 to getting rid of all these pieces of shit (referred to finance minister)” said Casalino, chief spokesman for Conte, in an audio note leaked to the press.

According to Italian statistics agency ISTAT estimates, Italy’s deficit was revised up to 2.4 percent from 2.3 percent and debt has been lowered to 131.8 percent. EU authorities have called on Italy to respect the 3 per cent roof on deficit.

 Tria, who has no affiliations to the government coalition parties, needs to reconcile populist pressure for costly campaign promises and Brussels’s limits on deficit.

 Due to Italy’s fragile finances, markets are extremely sensitive to any increase in borrowing (increasing deficit), causing investors to lose confidence in Italy’s ability to cut debt and stimulate growth.

 Former prime minister and media tycoon Silvio Berlusconi called on the Italian government to respect European deficit limits saying it would be disastrous if borrowing would be increased, a conference heard in Fiuggi on Sunday.

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