Key facts
- Italy's 2023 public deficit was 3.1% of GDP, exceeding the EU's 3% ceiling.
- The country will remain under the European Commission's excessive deficit procedure.
- Finance Minister Giancarlo Giorgetti expects Italy to exit the procedure in 2027.
- Italy's economy is forecast to grow 0.6% in 2025, the slowest in the EU.
- Italy's debt is projected to reach 139% of GDP.
Italy's government has failed to reduce its public deficit sufficiently to exit the European Union's fiscal oversight, a setback for Prime Minister Giorgia Meloni. The Italian National Institute of Statistics confirmed that the country's 2023 deficit stood at 3.1% of GDP, exceeding the EU's 3% budget deficit cap.
This breach means Italy will remain under the European Commission's "excessive deficit procedure" (EDP), a designation for governments needing to improve public finances. Italy has been subject to the EDP and Brussels' fiscal oversight since 2024, requiring adherence to stricter spending caps.
"Unfortunately, Italy will not exit the excessive deficit procedure ahead of schedule this year, as we had hoped, but … this may happen in 2027," Finance Minister Giancarlo Giorgetti said in a statement following the data release.
The figures are a disappointment for Meloni's government as the country prepares for general elections in 2027. Italy's economy is projected to grow by 0.6% in 2025, the slowest rate in the European Union, and its debt is set to reach 139% of gross domestic product.