--cut due to weaker global economy, domestic production
--Italy GDP contracted by more than 2% in 2012
--Italy GDP to turn "slightly positive" in 2014
--Risk for economy still elevated
--Italy deficit 3%/GDP iin 2012 vs 3.9% 2011
--Italy must consolidate gains in public finances and econ reforms
--Capital flows returning to the peripheral countries
--Bank lending still hurt by risk aversion