Tax & Spend

Italy Vows Deficit Below 3% in Budget Reaping Windfall From 2021

  • Extra €3 billion may be available, Bloomberg calculations show
  • Fiscal plan due next week after revisions to economic data

Giorgia Meloni

Photographer: Liesa Johannssen-Koppitz/Bloomberg
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Prime Minister Giorgia Meloni’s coalition pledged to get Italy’s budget deficit back under the European Union’s limit by 2026, in a move probably boosted by a revision to pandemic-era data.

Following a cabinet meeting in Rome, the government vowed that the shortfall will be below 3% within two years, with the full details to be unveiled next week after the publication of revisions to 2021 economic output. It’s likely that shift will create a windfall of as much as €3 billion ($3.3 billion).