Overview
- Italy’s net expenditure is set to rise 1.2% in 2025 and 1.5% in 2026, with a 0.5% cumulative increase since 2023, all below EU ceilings.
- The excessive deficit procedure remains on hold pending spring verification of 2025 outturns, with no new corrective steps for Italy and eight other countries.
- Valdis Dombrovskis said the plan aligns with the new fiscal framework and welcomed Italy’s efforts to bring the deficit below 3% this year.
- Giancarlo Giorgetti called the assessment proof Italy is on the right track, noting Superbonus cash effects on debt and acknowledging sluggish growth.
- The Commission urged completion of the PNRR by August 2026, stronger productivity and investment, and a shift toward cohesion funds, with potential access to the EU defence-spending safeguard tied to closing the procedure.