Austerity is a measure that should be employed during periods of economic prosperity, not recovery. Because Europe, including Italy, is in a recovering economic state, increased government spending is needed to help stimulate the economy and increase demand. A budget deficit will not damage a country unless it is exorbitantly large, which is quite difficult for a country to accomplish. The similar austerity policies employed in Spain have made the country's growth anemic when it could have been much stronger.
Harmful financial development might influence the EU to provide nations less harsh debt objectives. On the other hand, there is virtually no reduction in the all round austerity impetus. That is due to the fact that the area is fighting to come up with a realignment under its own 2 year financial debt disaster.
I think this is the best thing Italy can do right now to get their country out of the economic slump it has been in for quite some time, the government spensing needs to be significantly curtailed. The government thinks a new policy of increased expenditure could boost the flow of capital from the 0 per cent growth in the second quarter of this year.
Italy's EU Austerity program has worked fine in the past for their country. Why should they change it now? Just because it may be stalled at the moment, doesn't mean that it's going to stay that way. It's possible that if they do change it, then they will have to change it right back because it doesn't work. That would be completely pointless.