http://www.guardian.co.uk/world/2008/may/22/italy1/print
In a move that appeared certain to cause controversy, the interior minister, Roberto Maroni, said local authorities would be empowered to check on the living conditions of citizens from other EU nations before granting them right of residence.
This is clearly illegal and will by struck down by ECJ if they are ever asked. It is political theatre by Mr. Maroni and Mr. Berlusconi.
What can be legally required is that citizens from other EU nations are working, are students, or are self sufficient. There is no requirement about where and how they live, unless there is exactly the same requirement for Italian citizens.
The nice thing is that Roma who are denied residence will be able to bring a lawsuit for compensation from the Italian government.
freedom of movement in the EU 