A crucial government meeting over Italy's new budget deficit target scheduled for Wednesday might be postponed due to disagreements within the ruling coalition over an unrelated policy issue, daily Il Corriere della Sera reported.

Unless Rome makes concessions this week on its spending plans for 2019 and 2020, the EU Commission is expected on July 2 to open a disciplinary procedure against Italy for excessive debt.

The coalition of the anti-establishment 5 Star Movement and the far-right League party is due to formalise the new target on Wednesday, and also to discuss a deficit goal for 2020. However, 5 Star and the League are in disagreement over the latter's plan to give greater fiscal autonomy to the rich northern regions, il Corriere della Sera said.