ASSESSMENTS

Modest Growth and Spending Pressures Will Limit Italy's Debt Reduction Efforts

Nov 19, 2025 | 16:10 GMT

Italian Minister of Economy and Finance Giancarlo Giorgetti and Italian Prime Minister Giorgia Meloni on March 18 in the Italian Senate in Rome.
Italian Minister of Economy and Finance Giancarlo Giorgetti and Italian Prime Minister Giorgia Meloni on March 18 in the Italian Senate in Rome.

(Antonio Masiello/Getty Images)

Italy's fiscal performance has improved under the government of Prime Minister Giorgia Meloni, but the smaller fiscal deficits she has ushered in are unlikely to lead to a decline in government debt over the medium term given Italy's modest economic growth outlook and significant social and defense spending pressures....

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