Italy’s budget deficit for 2025 stood at 3.1% of GDP, according to confirmation from the country’s statistics office, Istat. This figure slightly surpasses the 3% threshold mandated by European Union fiscal rules, indicating that Italy will remain under the EU’s excessive-deficit procedure longer than anticipated.
The Italian government had hoped for a downward revision that would bring the deficit below the EU’s limit, potentially allowing an earlier exit from the excessive-deficit procedure. Economy Minister Giancarlo Giorgetti acknowledged the situation, noting that while an earlier exit was desired, the current projections align with expectations outlined in the nation’s Economic and Financial Document.
As per the government’s financial projections, Italy may not be able to exit the excessive-deficit procedure until 2027. This delay holds implications for Italy’s fiscal policy and its standing within the European Union’s economic framework, where adhering to fiscal rules is crucial for economic stability and cohesion among member states.