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Italy's 2025 deficit-GDP ratio confirmed at 3.1%, in blow to PM Meloni
ISTAT said the deficit fell from 3.4% in 2024, but Italy still faces EU oversight and tighter spending room.
- On Wednesday, statistics bureau ISTAT confirmed Italy posted a 2025 budget deficit of 3.1% of gross domestic product, dashing Rome's hopes of exiting the European Union's "excessive" deficit procedure a year early.
- Economy Minister Giancarlo Giorgetti explained that final figures pinned the deficit at 3.1%, narrowly missing the European Union's 3% threshold required to exit the disciplinary procedure.
- ISTAT reported Italy's public debt rose to 137.1% in 2025, while the International Monetary Fund projects the nation will post the euro zone's highest debt-to-GDP ratio this year, exacerbated by €51 billion in "stock-flow adjustment" costs.
- Remaining under the procedure limits Prime Minister Giorgia Meloni's spending leeway ahead of the 2027 election, as officials said the government will lower its economic growth estimate to around 0.5% for this year.
- Italy signals it may resort to a "national escape clause" to negotiate higher deficit targets with Brussels, targeting around 2.8% in 2026 and around 2.6% in 2027 under Treasury projections.
14 Articles
14 Articles
And so for only a tenth of a point, the Meloni government has gone beyond the 3% European constraint in the budget deficit. It is a small discrepancy with a public debt that has exceeded every record going beyond three thousand billion euros, but its effects will be devastating for the country; more so with the economy that is stopping due to the wars of Trump and Netanyahu. Accepting the new Stability Pact and not opposing the restoration of th…
Eurostat estimates Italy's deficit/GDP ratio to 3.1% for 2025, from 3.4% in 2024. With this value, a country's exit from the European deficit procedure seems to be excluded...
The figure above 3% refers to early exit from the excessive deficit procedure. The government's green light to the Dfp, between weak growth and new pressures on spending
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