The European Commission warned Italy on Tuesday that it risks fines unless it improves waste collection in Naples where thousands of tons of garbage have built up in recent days.

Exasperated residents have taken to setting alight mounds of rubbish in the southern city where landfill sites are overflowing.

The crisis in the Campania region led the European Commission to open what is known as an infringement procedure against Italy in 2007.

But Environment Commissioner Janez Potocnik said Tuesday that little or no progress has been made in finding a solution.

"The absence of such improvements leaves the commission with little choice but to actively pursue the infringement procedure," he said in a statement.

"Unless the situation is reversed in due time, this could lead to financial sanctions being imposed on Italy by the European Court of Justice.

"I would hope that Italian authorities at all levels take the matter in hand so that tax payers' money goes to improving the situation on the ground rather than to paying fines."

Naples is the stronghold of the Camorra -- a powerful international crime syndicate whose activities include drug trafficking and has major interests in construction, import-export and waste disposal.

Mayor Luigi De Magistris on Tuesday accused the group of orchestrating acts of vandalism to stop him from putting in place an ambitious recycling plan, thereby depriving the Camorra of revenue.

Local waste collection company Asia said there were an estimated 1,430 tons of rubbish in the streets on Tuesday compared to levels of up to 3,000 tons in recent days -- although there are still piles on the outskirts of the city.

Potocnik said: "I am encouraged by the commitment that the new mayor of Naples is bringing towards resolving the problems of waste collection and the commission is keen to cooperate with the Italian authorities in any way helpful to reaching a positive outcome for the inhabitants of Naples."

De Magistris won a local election last month against a candidate from Berlusconi's ruling People of Freedom party, which also lost control of Milan.

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