Overview

• Italy will not pursue a corrective maneuver in the upcoming budget because public finances are tracking forecasts, the economy minister said in Cernobbio.
• Giorgetti called higher defense commitments a new factor whose impact on the public accounts is still being evaluated and said he hopes targets are not compromised.
• He pressed Italy’s defense industry and state-controlled firms to scale up quickly to capture orders and jobs, warning otherwise spending would rise without domestic returns.
• The government maintains a 0.6% growth outlook for 2025 and will frame family-focused measures with fiscal prudence.
• He noted that Stability Pact flexibilities apply to military spending only and dismissed summer speculation on new taxes or buyback levies, saying no decisions exist.