Prime Minister Giorgia Meloni’s government is racing to push through a budget that fulfils tax-cutting pledges while trimming its deficit, as Rome seeks to maintain the market’s confidence in Italy’s fiscal rectitude.
Rome’s final effort to settle on next year’s budget, which must be approved by parliament by December 31, comes amid a sharp turnaround in investor sentiment towards Italy after the jitters that initially greeted Meloni’s election.
Italy, which was put under the EU’s excessive deficit proceedings this year, has set out a fiscal consolidation road map for curbing its budget deficit from 7.2 per cent of GDP last year to less than 3 per cent by 2026, bringing it in line with Brussels’ stability and growth pact.
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