Tax & Spend
Italy Won’t Meet EU’s 3% Deficit Target Until at Least 2026
- Budget gap will narrow to around 4.4% this year, people say
- Growth at 1% this year not enough to bring down deficit faster
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Italy will take until at least 2026 to get its budget deficit below the European Union’s 3% limit, according to people familiar with the matter, potentially earning extended scrutiny from the bloc’s fiscal watchdogs.
With the shortfall at 7.2% of GDP last year due to a tax break on home renovations, Premier Giorgia Meloni’s government will take several years to get its finances back onto a sustainable path, according to the people, who declined to be identified because the discussions are private.