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🇮🇹 Italy /Economy & Trade

Giorgetti sees GDP nearing 1% and tells companies to treat wages as investment

From ANSA · () Italian

Translated from Italian and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Context piece
  • Economy Minister Giancarlo Giorgetti said Italy’s growth could approach 1%, above the 0.6% forecast in planning documents, after 0.8% growth had already been secured.
  • He urged companies to treat wages as an investment and said the budget law should address Italy’s demographic decline and encourage young people abroad to return.
  • Giorgetti said the Treasury remained neutral on its 4.8% stake in MPS and warned that the final 2025 deficit figure could determine whether Italy remains under an EU procedure.

Italy’s economy could grow by close to 1% this year, Economy Minister Giancarlo Giorgetti said as he closed the Teha Forum in Cernobbio. The government had based its planning on a cautious 0.6% growth estimate, but Italy has already secured 0.8%, he said.

“If things go as the indicators suggest, we could approach 1%, above the forecasts contained in the planning documents,” Giorgetti said. He also urged business owners to look at wages as an investment that could help restart the economic cycle. The government, he said, would contribute through tax and social-contribution incentives.

Giorgetti warned that a “demographic desert” was approaching. He said the budget law should give the issue particular attention and promote the return of young Italians who have moved abroad.

must look at wages as an investment to restart the economic cycle

· Giancarlo GiorgettiThe economy minister urged companies to use pay increases as part of an effort to revive growth.

The minister described himself as a “pragmatic sovereignist” in managing Italy’s public debt. On the deficit-to-GDP ratio, he avoided making a firm prediction before the National Institute of Statistics publishes the final 2025 figure on Sept. 22. A result even slightly above 3% would leave Italy in the procedure, while a result slightly below it would take the country out, he said.

Giorgetti also said the Finance Ministry was “completely neutral” on the MPS dossier and that its 4.8% stake in the bank remained effectively frozen.

We have not been phenomenal, but the boat has remained afloat.

· Giancarlo GiorgettiGiorgetti characterized Italy’s economic position amid a difficult geopolitical environment.

His wider warning focused on an increasingly difficult international environment. He pointed to challenges involving productivity, security, raw materials, industry, defense and artificial intelligence. Europe, he said, was entirely absent from the artificial intelligence race, while the United States was managing to keep pace with China.

He also highlighted what he called a major gap between investment and savings in Europe and the United States. European savings flow to the United States, where they are invested, he said, questioning why Italian supplementary pension funds could not invest more in Italy and whether the country offered sufficient opportunities for patient capital.

“We have not been phenomenal, but the boat has remained afloat,” Giorgetti said, adding that Italy was more respected abroad than at home.

completely neutral

· Giancarlo GiorgettiHe described the Treasury’s position on the MPS dossier.
About this summary

Originally published by ANSA in Italian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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