Will there be another budget spat between Italy and the EU Commission, with the latter launching a new so-called Excessive Deficit Procedure (EDP) against Italy after all? Frankly, we have now idea because Brussels moves in mysterious ways. Still, the differences between Italy and Brussels are not insurmountable. A change of perspective on the part of the Commission would be helpful. However, as far Brussels is concerned, we are reminded of the famous remark about the restored Bourbon monarchy in 19th century France: “they have learned nothing, and forgotten nothing.” When the Commission released its new forecasts at the start of the month, it forecasted a paltry 0.1% growth this year. For what it’s worth, that compares with sell-side consensus of 0.2%. Growing by just 0.1% for the full year seems overly pessimistic, even for Italy. In the first quarter GDP expanded by 0.23%. The Italian economy would have to stagnate for the rest of the year to meet those forecasts. In other words, Brussels and street economists are just too damn bearish. For the full report, click HERE