Some European finance ministers and EU officials I talked to beforehand suggested that they expected exactly this kind of climbdown, and said that they saw it as the natural outcome of a market keen to enforce disciplinary limits on Italy's most expansionist spending plans in a generation. The national parliament has to approve the budget law by year-end.
Meanwhile, Italy's 10-year bond yields (BTP) crossed the 300 basis-points mark.
The standoff between the European Commission, the European Council and Rome is escalating, triggering global financial tremors.
"If somebody in Berlin or Brussels thinks that the "reset" of dozens of migrants in Italy unauthorized Charter flights, they should know what the available airports and never will be" - said Salvini. He said "serious economic operators" would invest in Italy when they had read the budget plan and understood it would boost economic growth and employment, while cutting taxes.
Tria called on the coalition's leaders to "lower the tone" and stop fighting with Brussels.
"I say to those who are thinking of speculating on the Italian economy that they are wasting time and wasting money because we will not go back", Salvini said.
THE euro fell across the board on Monday, posting its biggest drop against the Swiss franc since early September as a spat between Rome and the European Union over Italy's budget plans forced a spike in Italian bond yields.
"We are concerned that Italy will present totally unrealistic fiscal targets or growth projections, and that negotiations will prove very hard", he said in Helsinki.
The deficit for next's year's budget is supposed to be at 2.4%, although the European officials have commented negatively on it, so it seems hard that it will go through the European Parliament when Italy presents it next weekend.
At around 131 percent of gross domestic product (GDP), Italy has the highest debt ratio in Europe besides that of Greece.
"Given the (debt's) size and the need to service each year a not insignificant amount (about 400 billion euros), the danger of triggering a vicious circle. with repercussions on the real economy, is always present", Bank Director General Luigi Federico Signorini told the parliamentary commission.