Italy straining at the budget leash

Italy is slipping up on its budget deficit and other members of the European Union are beginning to take public notice. Italian economic minister, Guilio Tremonti, recently forecast his country's budget deficit this year could reach 2.6% of GDP. Almost everyone was under the impression Italy's deficit would be as little as 0.8%. Under the terms of the Stability Pact, signed by European countries before they enter the euro single currency agreement, no member country is allowed to run a budget deficit in excess of 3% of GDP. Moreover, all signatories promised to work toward achieving a b...