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Italy's Government has refused to budge from their budget proposal for 2019 despite the European Union rejecting the plan. Brussels issued Rome with an ultimatum, warning the bloc is prepared to severely fine the member states if their demands are not met by the end of November. The ongoing war of words between the Italian Republic and Eurocrats has been fuelling forecast the country could soon abandon both the bloc and the eurozone.

Mr Grant insisted the "dire" conditions in which Italian banks are at the moment could soon trigger a withdrawal from the common currency in favour of a domestic option. Speaking to Bloomberg, the financial strategist said: "I think Europe is about to find itself in a great deal of difficulty depending on what they do to Italy. "It may even get to the point where Italy is going to introduce their own currency or even pull out of the European Union. "There’s a likelihood depending upon how the rest of Europea responds. This could happen yes." READ MORE: Eurozone fragile: Italy’s rule-breaking budget makes eurozone ‘WEAK’

EU news: Italy is "likely" to ditch the euro and leave the European Union, Mr Grant claimed

It may even get to the point where Italy is going to introduce their own currency or even pull out of the European Union Mark Grant

Commenting on the budget clash Italy is embroiled in with the European Union, Mr Grant added: "Italy has serious problems. Their banks are in dire straights across the board, they just had to bail out the Carige bank. "Italy said they wouldn’t change their budget and I think the EU is going to have a very strong reaction to this." Earlier this week deputy Prime Minister Matteo Salvini struck another blow against the bloc’s calls to edit the budget proposal as he claimed Brussels should stop bothering his Government. Speaking on Italian Maurizio Costanzo's show, Mr Salvini belittled the EU on its failed attempt to help Italy's economic growth. He then proceeded to claim Brussels is full of "scribblers" sending his Government letters "every 15 minutes" and called on the EU to stop "breaking our b***s" on the controversial budget proposals. As the TV host asked him “How is Europe doing?”, the Italian Interior Minister laughed.