“We are working on hypotheses with the European Union,” Conte told reporters after a Group of 20 nations summit in Buenos Aires, where he met commission head Jean-Claude Juncker on the sidelines. “We trust that in coming days we will be able to discuss a technical solution.”

Conte stressed that the talks were confidential. But another constraint on the premier is that he must return to Rome to brief his eurosceptic deputies Matteo Salvini and Luigi Di Maio, who have in past days flagged a readiness to lower a 2.4% budget deficit target for next year.

With Italy risking an infringement procedure that could lead to fines, Conte said that such a sanction “would not be convenient for Europe, because we are in the same boat. When you’re in the same boat you want to get to a safe harbour.”

Conte said the budget, which seeks to start delivering on costly campaign promises including welfare benefits, a lower retirement age and tax cuts, aimed to avoid “the country falling into a recessionary spiral.”

Italy has suffered from years of near-stagnation and the European Commission says it expects the country to have the slowest growth rate in the 19-nation euro region this year and next.