Italy expects to cut budget deficit to 2.8% of GDP in 2026

Milan, Italy: Italy is aiming to slash its budget deficit to 2.8 percent of GDP in 2026, below the 3 percent limit set by the European Union, the fina...

Milan, Italy: Italy is aiming to slash its budget deficit to 2.8 percent of GDP in 2026, below the 3 percent limit set by the European Union, the finance ministry said Friday.

Thanks to larger-than-expected tax receipts, Rome is expecting a public sector deficit of 3.8 percent of economic output this year, down from 7.2 percent in 2023, and below the 4.3-percent forecast the government made in April.

The pledges of Prime Minister Giorgia Meloni's government were laid out in a seven-year plan to narrow the deficit that was presented to the cabinet by Economy Minister Giancarlo Giorgetti, before being sent on to the European Commission.

The Commission has already cited Italy and six other EU members for having excessive deficits.

"The plan adopts a serious, prudent and responsible approach, and is in line with actions the government has taken from the start," the ministry said in its statement.