Italy’s debt burden rises as borrowing costs and tensions mount

Italy owes a very large amount of money compared with the size of its economy.

The government expects this debt to reach almost 139% of GDP this year.

Borrowing has become more expensive because interest rates on Italian bonds have risen.

Economy Minister Giancarlo Giorgetti said the situation is becoming alarming.

He said wars in Ukraine and the Middle East could push prices higher.

Giorgetti believes this inflation is mainly caused by supply problems, not by people buying too many goods.

Italy plans to remove road tax next year for 14.5 million cars and motorcycles.

It also wants to reduce energy costs and use extra flexibility allowed by the European Union.

The government hopes new deficit figures will help Italy leave the EU’s disciplinary procedure sooner.