Speaking from Dublin, the economy minister points to global shocks and rising borrowing costs as Italy’s public debt burden grows alarmingly.
Economy Minister Giancarlo Giorgetti has warned that the cost of servicing Italy’s public debt is climbing “at an alarming rate”, blaming geopolitical tensions and global supply-chain shocks.
Speaking via video link from a meeting of European finance ministers in Dublin, Giorgetti said inflation would rise “ineluctably” should the conflicts in Ukraine and the Middle East continue. His comments followed a rough week at auction for Italian government bonds: the 3-year BTP yield hit its highest level since June 2024, at 3.43%, while the 7-year BTP fetched 3.98%, its highest since November 2023.
Despite that, the Italian government has scrapped the road tax for motorcycles and small and medium-sized cars. Overall, the auto bollo creates revenue of around €7.48-7.5billion into regional coffers, where it contributes to the cost of healthcare, local transport and welfare spending. This will leave a funding gap that central government will now have to fill.
Debt set to overtake Greece
Under its most recent budget plan, Italy’s public debt is forecast to peak at almost 139% of GDP this year, making it the eurozone’s most indebted country, ahead of Greece.
Giorgetti also said he still hopes for a downward revision of Italy’s 2025 deficit figure, due to be published by ISTAT and Eurostat on 22 September. That could pave the way for an early exit from the EU’s disciplinary procedure over excessive deficits.
