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Corte Dei Conti Warns of Defense Budget Strains and Public Service Shortfalls

Streamlining fraud controls for EU funds with higher public sector pay could strengthen Italy’s response to widening deficits.

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Overview

  • The court cautioned that Italy’s sizeable budget deficit will make meeting NATO’s 5% defense spending target by 2035 difficult amid ongoing global tensions.
  • It denounced healthcare waiting lists as “shameful” and welcomed a State-Regions agreement aimed at cutting delays by better compensating and empowering medical staff.
  • Despite strong uptake of the ‘rottamazione quater’ amnesty, the court flagged that 49% of declared payments remained unpaid by end-2024, underscoring persistent tax compliance gaps.
  • The recent extension of beach concessions should be the last, the court urged, calling for strict oversight of award procedures to prevent mafia infiltration.
  • To improve administration of European and PNRR funds, the report recommends simplifying and standardizing anti-fraud checks to reduce overlaps and boost capacity.