How will the Italy-EU budget clash play out?

We had previously assumed that the EU would put Italy into an Excessive Deficit Procedure in July, but recent reports suggest that this might be postponed until later in the year. Either way, Italy’s public finances remain on an unsustainable path, and its relationship with the EU is set to be rocky. In this Update, we answer five key questions about the EU’s fiscal rules and how they are applied to Italy.

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