• We want to use the occasion of the EU Commission updating its biannual economic forecasts yesterday to take a closer look at Italy’s debt position (again). Of course, no one cares about the EU’s new economic forecasts. Almost always they are wrong. And often enough they are utterly wrong. However, the forecasts do include useful data on government budgets and debts. Data that we merrily use for straightforward Debt Sustainability Analysis (DSA) involving Italy. We have plenty of sick man in the Eurozone, but none is as of such systemic importance as Italy.

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