Pours cold water on this morning’s rumour of Italy downgrade.
- Italy accustomed to high public debt , low growth, governments draw up budgets taking account of high debt
- Italy used to political instability, decision to approve 2011 budget before confidence vote shows discipline
- Italy has shorter road than other countries to reach primary surplus sufficient to cut debt
- Longer average Italian debt maturity means higher interest rates will not immediately impact debt trend
