• Amendments have strengthened govt austerity package, improved forecast budget balances for 2011-14
• Maintains forecast for 2011 Italy GDP growth at 1%, 2012 growth 1.1%
• Expect Q2 Italian growth to have picked up to reach similar levels to EU zone average, uncertainty over industry outlook
• High level of uncertainty over macroeconomic outlook, risks over international recovery, eurozone debt crisis
• Costs of recent wider spreads limited in immediate term but would be serious if persisted