Politics · Italy · 5 hrs ago
Italy hopes to exit EU deficit procedure by May
Italy has approved a budget plan it says is serious as it seeks to leave the European Union’s excessive-deficit procedure.
The procedure applies to countries whose budget deficits exceed EU limits, and Italy remained in it after its deficit reached 3.1% of gross domestic product in 2025.
The government expects the deficit to fall to 2.9%, but that figure must be confirmed by data due in March.
If confirmed, the European Commission could propose Italy’s exit in April, with EU finance ministers possibly approving it in May.
Leaving could give Italy about €14 billion in 2027 for defence and energy projects without the usual EU budget constraints.
That added room could matter in an election year, but higher energy prices and borrowing costs, along with possible disruption to growth, could still complicate the plan.
Italy hopes to leave the European Union’s excessive-deficit procedure by May, which could give the government more room to spend in 2027.
The plan depends on data due in March confirming a deficit forecast of 2.9% of gross domestic product.
The European Commission could propose Italy’s exit in April, with EU finance ministers possibly approving it in May.
Leaving the procedure could allow about 14 billion euros in 2027 spending on defence and energy projects to be exempt from EU limits.
Finance Minister Giancarlo Giorgetti has warned that economic pressures, including higher energy prices and borrowing costs, could complicate the plan.
- Who
- Italy’s government, led on the plan by Finance Minister Giancarlo Giorgetti.
- What
- Italy hopes to exit the EU excessive-deficit procedure. The move could give it more room for spending in 2027.
- When
- Possibly by May, if the deficit data due in March support the forecast and EU institutions approve the exit.
- Where
- The decision would involve the European Commission and EU finance ministers in Brussels.
- Why
- Leaving the procedure could provide more budget flexibility, including for defence and energy projects in 2027.
This story does not have two clearly opposing sides.
Italy recorded a deficit of 3.1% of GDP, requiring it to remain in the EU excessive-deficit procedure.
Data are due that could confirm a forecast deficit of 2.9% of GDP.
The European Commission could propose that Italy leave the procedure.
EU finance ministers could approve Italy’s exit.
- Deficit in 2025
- 3.1% of GDP
- Forecast deficit
- 2.9% of GDP
- Potential Commission proposal
- April
- Possible EU approval
- May
- Potential 2027 spending
- About 14 billion euros on defence and energy projects
1 source
What people are saying
serious