Italy 2025 Deficit Set at 3.1% of GDP, Undercuts Meloni Fiscal Targets

Italy's statistics agency confirmed the 2025 budget deficit at 3.1% of GDP, dashing government hopes for a downward revision. The figure complicates Meloni's fiscal consolidation narrative and may pressure Italian bond spreads ahead of EU budget negotiations. Uncertainty remains over whether the government will adjust spending plans or face EU scrutiny.