European Comission rejected budget of Italy, Bloomberg reports. This is an unprecedented step in bloc's history that will intensify tension between Rome and Brussels, which disturbed the markets in recent months.

Expressed negative opinion means that the government is asked to revise its plans and submit new budget within three weeks. However, Italy does not have reserve plan at the moment.

Rejection of the budget followed after months of disputes in regards to Italy's spending plans that violate EU rules. It shall be noted that Italy has the highest public dept ratio in euro area after Greece. Thsi is why the country's plans influenced investors' mood and sent the yields of bonds to the highest level in five years last week. Besides, Moody’s Investors Service reduced the country's credit rating.