Italy’s public debt tops 3 trillion euros, highest on file

By Sara Rossi

MILAN (Reuters) – Italy’s public debt rose additional in November, exceeding 3 trillion euros ($3.1 trillion) and hitting a file excessive, the central financial institution of the euro zone’s third-largest financial system stated on Wednesday.

The sustainability of Rome’s big public debt has lengthy been seen as an important issue for the survival of the euro zone, and Italy has been essentially the most sluggish financial system within the bloc for the reason that launch of the one foreign money round 25 years in the past.

Italy’s debt climbed to three,005.2 billion euros in November, in contrast with 2,981.3 billion euros within the earlier month, Financial institution of Italy information confirmed.

The nation’s public debt – already the euro zone’s second-largest after Greece in relation to gross home product (GDP) – is forecast by the federal government to rise to round 138% of GDP in 2026, from 135% in 2023.

If financial progress in 2025 is available in considerably under the federal government’s 1.2% goal, as most forecasters count on, the debt-to-GDP ratio is because of enhance additional.

As a consequence, markets might change into extra reluctant to purchase Italian bonds, rising the federal government’s debt-servicing burden.

As a proportion of complete authorities spending, that burden stood at 6.8% in 2023, the most recent out there determine, down from 7.5% a yr earlier, in keeping with Italian Treasury and UniCredit information.

Rome, which was put underneath the European Union’s extreme deficit process final yr, hopes to convey its deficit under the EU’s 3% of GDP ceiling in 2026, from 3.8% focused final yr and seven.2% in 2023.

($1 = 0.9705 euros)