Italy's Deficit Hits 3.1%, Slowing Growth; Government Faces Appointments

Italy faces a challenging economic outlook as growth slows and the public deficit widens, jeopardizing its exit from a European infringement procedure. The government is poised to approve the Public Finance Document (DFP), which forecasts a deficit of 3.1% of GDP for 2025. This figure surpasses the 3% threshold set by the European Union, meaning Italy will not be able to leave the excessive deficit procedure this year as hoped. This situation limits the government's fiscal flexibility, particularly concerning increased defense spending, which the government may not be eager to pursue given the current economic climate and the need to support households and businesses. Prime Minister Giorgia Meloni has emphasized the need for clear signals, particularly regarding fair wages, aiming for a minimum of 9 euros per hour while strengthening collective bargaining. The DFP will reflect the slowing economy, with GDP growth for 2026 expected to be lower than the previously estimated 0.7%. Amidst these economic concerns, the government is also navigating a reshuffle of ministerial undersecretary positions following a recent referendum defeat. Key appointments are expected, including filling the vacancy left by Andrea Delmastro, who resigned from his post as undersecretary for Justice. The Corriere della Sera's reporting highlights the complex interplay of economic policy, European fiscal rules, and domestic political maneuvering as Italy grapples with its current challenges.

“

Ma slitta Freni alla Consob. Oggi il Documento di finanza pubblica. Lavoro, il piano del governo Sottosegretari senza Freni.