Italy is successful in reducing the budget deficit. Stable income indicates the possibility of faster meeting the target within the EU rules.
Italy’s budget deficit could fall below 3 % of gross domestic product (GDP) of the country already this year, a year earlier than originally planned, the Minister of Economy Giancarlo Giorgetti said on Saturday. TASR reports this based on Reuters report.
In April, the Italian government undertook to reduce the budget deficit to 3.3 %of GDP from 3.4 %last year, and in 2026 expected a decline to 2.8 %. According to the government, a stable increase in tax revenue increases the likelihood of an earlier reduction in the deficit below the 3 % GDP limit set by EU debt rules. In seven months of this year, by the end of July, revenue increased by 5.3 %year -on -year, which is more than EUR 16 billion in absolute numbers.
When asked if there is a chance to press the deficit under the three percent ceiling this year, Giorgetti answered that this is possible. If this were to happen, the European Commission (EC) could close the proceedings that have been conducting Italy since last year to violate the Union’s budgetary rules. “The possibility of terminating the procedure is real and it is in the interest of the country,” Giorgetti stressed.
