EUROPE – Italy may obstruct European Union plans to tax income from overseas savings and to tax oil products as it tries to defend its milk producers.

Italy’s demands focus on a special tax regime for milk producers and tax breaks for lorry drivers’ fuel.

If the EU does not agree to the demands, it will not be able to make a deal with Switzerland to limit fiscal evasion, because EU financial rulings must be voted for unanimously.

Italy refused to back down on the issue on 7 March, and remains steadfast in its demands. It is requesting a partial write-off of around