Italy: New budget draft may include growth forecast downgrades - ING

"Tomorrow is the deadline for the Italian government to submit a revised draft budget to the EU Commission," note ING analysts. 

Key quotes

"We don't expect the government to amend its 2.4% deficit/GDP target, often considered as the unmovable political standpoint. However, on the back of poor data releases, we believe the new draft might include less optimistic GDP projections and/or the inclusion of automatic spending cuts to ensure that the 2.4% target is an absolute maximum."

"This would be a small signal of flexibility towards softening the confrontational stance towards the EU, in an environment where the Italian government is being increasingly isolated within the EU Council."