Italy escapes EU budget warning

Italy has escaped an EU warning over its worsening finances at a meeting of euro zone finance ministers in Brussels.

French finance minister Nicolas Sarkozy said Prime Minister Silvio Berlusconi, who represented Italy at the talks following the shock resignation of his economy minister Giulio Tremonti, had promised measures to redress the rising deficit.

The decision to reject the European Commission, which wanted Italy to be given an 'early warning', was expected to be formally adopted by fina