BRUSSELS (Reuters) – European Union governments’ representatives backed on Thursday a disciplinary move against Italy over its debt, an EU official told Reuters, just as signs of compromise were emerging from Rome.

The Economic and Financial Committee of the EU Council adopted an opinion that says a debt-based disciplinary procedure against Italy “is warranted,” the official said.

The move, which confirms a Reuters report earlier this week, allows the executive European Commission to recommend the formal opening of a disciplinary procedure against Italy over its excessively expansionary 2019 budget, which does not reduce the country’s large debt as required by EU rules.

The decision comes a day after Italian Economy Minister Giovanni Tria said his government was looking for ways to contain public spending while supporting flagging economic growth to head off disciplinary action.

Following a Commission recommendation, EU governments would have to formally start the procedure, which could lead to financial sanctions and would keep Italy in the market spotlight for a prolonged period.

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