Italy is not budging on the budget deficit target
- European Commission forecasts are based on partial analysis of budget law
- Forecasts will not interfere with government's talks with commissioners
It doesn't look like they will change their stance ahead of next Tuesday's deadline to respond to the European Commission. This will set up an interesting dialogue between the two next week and it presents an outside risk to the euro if things start to turn sour - more than it already is.
