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Italy expects 2026 budget deficit to fall below 3% of GDP
Original: Italy expects 2026 deficit to come in below 3% of GDP in 2026
Italy's government expects its budget deficit to drop below 3% of GDP in 2026, a threshold consistent with the EU's fiscal rules. The projection suggests Rome believes its fiscal consolidation path is on track, despite earlier concerns about its spending plans. Observers are watching whether the target is realistic given Italy's high debt burden and the country's ongoing negotiations with European institutions over its medium-term budgetary plans.
Why now: Markets and EU officials are focused on whether Italy can comply with EU deficit rules amid concerns over its fiscal trajectory.
Evidence
- Italy expects 2026 deficit to come in below 3% of GDP in 2026 · MarketsCapApp
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