MILAN (Reuters) – Italy is expected to set a 2025 economic growth target of 1.3% or 1.4% as part of a medium-term budget plan to be sent to the European Commission on September 20, Italian daily Il Sole 24 Ore reported on Sunday. .
Without policy changes, Rome expects growth of 1.1% next year, the newspaper added, which is below the 1.2% forecast made in April. The ultimate goal is a little more than that, however, as Rome plans to approve tax cuts to support public purchasing power and boost domestic demand.
This plan will provide an updated framework for Italy's fragile public finances.
The Italian treasury could not be reached for comment.
Rome was placed under the so-called Excess Debt Procedure by the EU this year, and the Ministry of Finance's plan, which aims to bridge the financial gap in accordance with EU directives, must also comply with the latest changes in the financial rules of this organization.
The deregulation process obliges Italy to reduce the total structural budget deficit of one-off factors and business cycle fluctuations by 0.5% or 0.6% of GDP per year.
Sources told Reuters late last month that in the medium-term budget plan, Prime Minister Giorgia Meloni's government will stick to a commitment to bring the deficit-to-GDP ratio below the EU ceiling of 3% by 2026.
Il Sole 24 Ore reported that Italy's ratio of deficit to GDP could fall below 4% this year compared to the expected rate of 4.3% made in April due to the positive state of tax revenues.
