Italy's Plan to Reduce Deficit to GDP Ratio Below EU Ceiling by 2026 Revealed
Italy is set to unveil a strategic budget plan aimed at bringing its deficit-to-GDP ratio below the European Union's 3% limit by 2026. Sources close to the matter have disclosed that the Treasury will present this plan by mid-September, adhering to EU guidelines and regulations.
Rome has been under scrutiny by the EU and is required to reduce its structural budget deficit by 0.5% or 0.6% of GDP annually. The new fiscal rules mandate a gradual reduction in deficit and debt starting in 2025 over the next four to seven years.
The government has previously pledged to decrease the fiscal gap to 3.6% of GDP in 2025 and further to 2.9% in 2026. Despite current trends showing slightly higher levels, Italy remains committed to meeting these targets.
The structural budget plan for 2025 must be submitted to EU authorities by September 20, outlining the framework for the upcoming budget. Prime Minister Giorgia Meloni's administration is also considering extending temporary tax cuts and social contributions reductions, with a focus on aiding individuals earning up to 60,000 euros.
The government has not clarified how these measures will be financed, raising questions about the sustainability of these plans. Meloni is scheduled to meet with key coalition members to discuss Rome's budget strategy further.
In conclusion, Italy's commitment to reducing its deficit and complying with EU regulations is crucial for its economic stability and credibility in the international financial markets. Investors and citizens alike should monitor these developments closely as they can have a significant impact on Italy's financial outlook and overall economic health.