HomeBussinessItaly says EU to put it under excessive deficit procedure

Italy says EU to put it under excessive deficit procedure


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European Union authorities will put Italy and other countries under infringement procedure for excessive deficit, the Italian economy and finance minister said today.

Giorgia Meloni’s government estimates a deficit-to-GDP ratio this year broadly in line with its 4.3% goal set in September, therefore far above the 3% ceiling set by EU rules.

“It is granted that the European Commission will recommend the Council to open an excessive deficit procedure against us as well as several other countries,” minister Giancarlo Giorgetti said during a parliamentary hearing.

The infringement procedure will oblige Italy to cut its structural deficit by a minimum 0.5% of GDP per year.

The latest reform of the bloc’s two-decade-old fiscal rules sets a slow but steady pace of deficit and debt reduction from 2025 over four to seven years, with the longer option available if a country undertakes reforms and investments in areas the EU prioritises.

Rome will update a raft of economic projections by April 10 through the Treasury’s Document of Economy and Finance (DEF).

It is also now preparing its fiscal adjustment path, to be submitted to the European Commission by September 20, Giorgetti said.

Outlining plans to keep strained state finances in check, Giorgetti added it would be appropriate for state-controlled companies to keep their liquidity in a current account with Italy’s Treasury.

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