Bank of Italy: Small deviations in gov’t budget could jeopardize deficit plans

Some headlines from the Bank of Italy

• ISTAT revision implies downward mechanical correction of 0.2 pp of GDP from estimate of 1.0%
• Small deviations from govt’ budget plans could make it difficult to bring deficit below EU’s 3% of GDP limit in 2026
• Sees slight GDP expansion in Q3

Do European budget rules even matter anymore? They battered Italy, Greece and Spain for years now the core of Europe is pretending like there were never any rules and the plans to meet deficit targets are in the distant future.

This article was written by Adam Button at www.forexlive.com.