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Italy Debt Could Spin Out of Control Unless Growth Picks Up

  • Borrowing costs could start to climb as soon as next year
  • Head of Lower House finance committee speaks in interview
New measures ban Italians from leaving or entering cities in high-risk areas, including the financial capital Milan.

New measures ban Italians from leaving or entering cities in high-risk areas, including the financial capital Milan.

Photographer: Francesca Volpi/Bloomberg
Updated on

Italy could see its government debt spiral out of control next year unless the economy bounces back quickly from a second coronavirus lockdown, according to a senior lawmaker from the governing coalition.

“Italy will end this year with debt-to-GDP at around 160% -- if the economic rebound is limited, we risk an explosive debt dynamic already in 2021,” Luigi Marattin, who heads the finance committee in the Lower House of parliament, said in an interview Wednesday.