Tria called for a constructive discussion with Brussels over the budget and said Italy's structural deficit will recover once GDP and employment returns to pre-crisis levels.

Italy's five-year bond yield rose to 3.042 percent , its highest level in almost five years, while 10-year bond yields hit a new 4-1/2 year high at 3.63 percent .

Analysts said talk of a report that the European Commission was likely to reject Italian budget plans was also putting upward pressure on yields.