Italy plans a 0.3% budget deviation for energy and defense — ANSA English

Italian Economy Minister Giancarlo Giorgetti presented the Public Finance Planning Document to the Chamber of Deputies. It provides for the use of the safeguard clause permitted by the European Union to deviate budget indicators by 0.3% in the 2027 budget law, for investments in energy and defense, ANSA English reports.

Course toward fiscal consolidation

Giorgetti said that the government intends to maintain a cautious approach to managing public finances amid considerable instability. According to him, three-year planning is very difficult under such conditions, while data, as International Monetary Fund indicators show, are updated weekly.

The minister noted that the document must ensure adherence to the course of fiscal consolidation and the targets of the EU’s new economic governance framework. Under favorable conditions, Italy expects to exit the excessive deficit procedure in the spring.

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Deficit indicators

To complete the procedure, Italy’s budget deficit must not exceed the 3% of GDP threshold. Giorgetti said he expects to reach this figure in 2026: in 2025, the deficit stood at 3.1% of GDP, while in 2027 it is expected to rise to 3.4% of GDP due to the application of the safeguard clause.

The head of the Economy Ministry called the request for a budget adjustment for defense and energy needs a deliberate departure from the cautious position he had previously supported. According to him, the European Commission recognizes these measures, while markets consider them acceptable within the framework of ensuring the long-term sustainability of Italy’s public debt.