Italy Says It Struck Deficit Compromise With EU

Italy Says It Struck a Budget-Deficit Compromise With EU

If confirmed by the European Commission, the deal would resolve a standoff that had helped push Italian economy to the brink of recession

ROME—Italy’s finance ministry said it has agreed on a compromise with European Union authorities over the country’s budget deficit, resolving a dispute between Rome’s populist government and EU fiscal enforcers that has vexed financial markets for months.

The agreement, which wasn’t confirmed on Tuesday night by the EU executive, the European Commission, would allow Italy to avoid an EU disciplinary procedure for now.

If...