Clash between EC and Italy - BBH

Research Team at BBH, suggests that the coming clash, perhaps as early as next week, may be between the EC and Italy. 

Key Quotes

“The EC has given Italy a week to revise its budget proposal or face the start of a formal process to reject it.  Renzi, who is fighting possibly for his political future over the constitutional referendum, may have little to lose by fight the EC.  However, the issue seems minor.  Renzi's budget proposal projects a deficit of 2.3% next year from 2.4% this year, though it is higher than previously anticipated.  The earthquake and the migrant crisis may also be mitigating factors. 

Moreover, it may not be unreasonable to argue that rather than the bad loans holding back the economy, it could very well be that the weak economy is exacerbating the bad loan problem.  The implication is that the emphasis may need to shift to a more pro-growth stance.”