Italy's Deficit Exceeds 3% of GDP, Unable to Exit EU Surveillance Procedure
Eurostat data released today shows Italy's budget deficit stands at 3.1% of its GDP, exceeding the EU's 3% limit. Consequently, Italy remains under the EU's Excessive Deficit Procedure (EDP), restricting its fiscal space for upcoming defense initiatives and economic stimulus amidst slowing growth.
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- 📰 Published: April 22, 2026 at 21:11
- 🔍 Collected: April 22, 2026 at 21:32 (20 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 14:55 (17h 23m after Collected)
Central News Agency
(CNA Reporter Huang Ya-shih, Rome, 22nd) Eurostat published data today showing that Italy's deficit accounts for 3.1% of its GDP, still exceeding the EU's 3% limit. This indicates that Italy's fiscal budget remains unable to exit the EU's "Excessive Deficit Procedure" (EDP) surveillance mechanism.
According to the EU's "Stability and Growth Pact," member states' fiscal deficits should not exceed 3% of their GDP, and total debt should be kept below 60% of GDP. The Italian government was initially optimistic about achieving the target of keeping the deficit below 3% by the end of 2025. However, Eurostat data released today showed that Italy will not be able to break free from the EU's Excessive Deficit Procedure (EDP) surveillance mechanism this year.
The Italian newspaper "Corriere della Sera" reported that this data is crucial as it will serve as the basis for Italy's "Public Finance Document," impacting Italy's public budget and economic outlook. Italy is due to submit the "Public Finance Document" to the EU at the end of this month. Given the recent surge in energy prices caused by the war in the Middle East, Italy's public financial expenditures are expected to be cautiously revised downward.
Italian Minister of Economy and Finance Giancarlo Giorgetti has recently been striving to bring the deficit below 3%, including scaling back tax breaks, especially the "Superbonus" provided for property energy efficiency, in order to exit the EU surveillance procedure immediately. Giorgetti once even expressed confidence, stating he "believes in miracles," but the miracle did not occur.
The Italian government initially expected to exit the EU surveillance procedure to free up public fiscal space, which would also help win parliamentary approval for a new defense plan called "Safe," expected to cost 12 billion euros (about 444 billion NTD) over the next three years.
Recently, citing the energy crisis triggered by the war in the Middle East, the Italian government has repeatedly urged the EU to suspend the application of the "Stability and Growth Pact," similar to the pandemic era, but the EU believes current conditions do not meet the criteria for suspension.
"Corriere della Sera" noted signs indicating a slowdown in Italy's economic growth, with the 2026 GDP growth potentially falling below the previously forecast 0.7%. The government's current priority is to provide economic momentum. The government is drafting a May Day (Labor Day) decree aimed at strengthening employment and purchasing power. One aspect is enhancing the "fair wage," with a reference standard of about 9 euros per hour (about 333 NTD), but it will prioritize collective agreements over introducing a statutory minimum wage. (Editor: Hsieh I-hsuan)
(CNA Reporter Huang Ya-shih, Rome, 22nd) Eurostat published data today showing that Italy's deficit accounts for 3.1% of its GDP, still exceeding the EU's 3% limit. This indicates that Italy's fiscal budget remains unable to exit the EU's "Excessive Deficit Procedure" (EDP) surveillance mechanism.
According to the EU's "Stability and Growth Pact," member states' fiscal deficits should not exceed 3% of their GDP, and total debt should be kept below 60% of GDP. The Italian government was initially optimistic about achieving the target of keeping the deficit below 3% by the end of 2025. However, Eurostat data released today showed that Italy will not be able to break free from the EU's Excessive Deficit Procedure (EDP) surveillance mechanism this year.
The Italian newspaper "Corriere della Sera" reported that this data is crucial as it will serve as the basis for Italy's "Public Finance Document," impacting Italy's public budget and economic outlook. Italy is due to submit the "Public Finance Document" to the EU at the end of this month. Given the recent surge in energy prices caused by the war in the Middle East, Italy's public financial expenditures are expected to be cautiously revised downward.
Italian Minister of Economy and Finance Giancarlo Giorgetti has recently been striving to bring the deficit below 3%, including scaling back tax breaks, especially the "Superbonus" provided for property energy efficiency, in order to exit the EU surveillance procedure immediately. Giorgetti once even expressed confidence, stating he "believes in miracles," but the miracle did not occur.
The Italian government initially expected to exit the EU surveillance procedure to free up public fiscal space, which would also help win parliamentary approval for a new defense plan called "Safe," expected to cost 12 billion euros (about 444 billion NTD) over the next three years.
Recently, citing the energy crisis triggered by the war in the Middle East, the Italian government has repeatedly urged the EU to suspend the application of the "Stability and Growth Pact," similar to the pandemic era, but the EU believes current conditions do not meet the criteria for suspension.
"Corriere della Sera" noted signs indicating a slowdown in Italy's economic growth, with the 2026 GDP growth potentially falling below the previously forecast 0.7%. The government's current priority is to provide economic momentum. The government is drafting a May Day (Labor Day) decree aimed at strengthening employment and purchasing power. One aspect is enhancing the "fair wage," with a reference standard of about 9 euros per hour (about 333 NTD), but it will prioritize collective agreements over introducing a statutory minimum wage. (Editor: Hsieh I-hsuan)