Italian Prime Minister Giorgia Meloni looks on, on the day of the state funeral of the former Italian President and senator, Giorgio Napolitano in Rome, Italy, September 26, 2023.
Rome also cut its GDP forecasts to 0.8% and 1.2% over the next two years, from 1% and 1.5% before.
The ballooning deficit is chiefly a result of ill-fated renovation incentives introduced by previous governments and amounting to some 140 billion euros, or 7% of Italy’s GDP.
Record-high euro zone interest rates are also increasing the cost of servicing Italy’s mammoth debt, seen at 140% of GDP by year-end.
The risk is that Rome's green transition becomes a victim of its fiscal challenges.
Persons:
Giorgia Meloni, Giorgio Napolitano, Yara, Europe’s, Lisa Jucca, ’, quagmire, Neil Unmack, Streisand Neto
Organizations:
Italian, REUTERS, Reuters, X, Thomson
Locations:
Italian, Rome, Italy, Ukraine