The radical Five Star Movement-Lega coalition are aiming to boost the country’s economy by increasing investment in infrastructure.
The Daily Telegraph has revealed that Italian officials intend to use the ‘Golden Rule’, which was supported by Gordon Brown, in order to use money taken from the headline budget deficit.
However, this is regarded as a dangerous manoeuvre as the European Central Bank is reducing the amount of Italian debt it is purchasing.
In March, the spread on Italian two-year bonds was under 30 points. It is now at 200 basis points, and could increase even more.
Last week, the Morandi Bridge in Genoa collapsed killing 43 people, which sent shockwaves across Italy.
Matteo Salvini, Interior Minister and Deputy Prime Minister, said the disaster highlighted the madness surrounding EU austerity policies.
He said: “The Italian state must invest all the money needed to ensure the safety of our roads, railways, schools and hospitals, regardless of limits and mad European rules imposed on us.”
Italy has been hit very hard by austerity policies imposed by the EU across the continent.
Other Italian politicians were previously less critical of EU spending rules, but the bridge collapse has significantly altered their opinions.
Finance Minister Giovanni Tria has called for further investment in the country’s poor infrastructure “without budgetary constraints”.
Italian officials are hopeful they have enough power to implement an €82 billion plan that was initiated by the previous government.
However, concerns have been raised about how this will be funded.
Mr Tria also does not have high political capital after Italy’s pro-EU president Sergio Mattarella effectively appointed him against the wishes of the populist coalition government.
What happens in the next budget could have significant implications for the political establishment in Italy, with many believing an election would result in a more Eurosceptic government.
Brussels has asserted they provided Italy with plenty of fiscal flexibility and was supportive of spending on infrastructure.
The European Commission has allocated €2.5 billion for public investment in Italy between 2014 and 2020.
Matteo Salvini has nevertheless stated this money was simply what Italy had given to the EU in the first place.
It is still disputed if such heavy investment in infrastructure will be fully supported and funded.