Goldman Sachs warns Italy’s debt could rise through 2028

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  Goldman Sachs warns that Italy’s debt-to-GDP ratio could keep rising through 2028 and then stabilize at about 137%.

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  The bank says higher deficits and bond yields could add pressure to Italy’s public finances.

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  Italy approved €28 billion in additional funding for defense and energy spending over the next two years.

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  The government raised its deficit targets to 3.4% of GDP for 2027 and 3.2% for 2028.

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  Goldman says Italian debt could become Europe’s highest by 2028, particularly if 10-year bond yields remain above 4%.

Who

Goldman Sachs, including senior European economist Filippo Taddei, warned about Italy’s debt outlook.

What

Italy’s debt-to-GDP ratio could rise through 2028, as higher spending, deficits and borrowing costs put pressure on public finances.

When

The report was published on October 12, 2026. The Italian government approved additional funding on October 2.

Where

Italy.

Why

Increased government spending and higher bond yields could widen deficits and raise the cost of borrowing. Political competition could also make fiscal consolidation harder.

No direct quotes in the coverage so far.