Italy’s public finances have reemerged as part of the political debate following the publication of the European Commission’s Spring Forecasts where the Italian 2019 deficit is projected to reach 3.5% of GDP, a significant deviation from the Italian government forecast of 2.4%.

While the Italian economy appears to be rebounding from its current recession, according to the latest growth data, the projected deficit surpasses the 2.04% limit by the European Commission to retain Italy’s debt-to-GDP...