Italy halved its deficit and won back Brussels and the bond market, but the same discipline that bought credibility left the economy barely growing at all.
Italy · Economy
Key Facts
—The feat. Italy cut its budget deficit from about eight percent of output in 2022 to just over three percent in 2025.
—The reward. Ten-year borrowing costs fell from a 2023 peak near five percent to about three and a half, and Brussels may soon lift its deficit process.
—The engine. The deficit fell mainly by subtraction, above all the winding-down of the costly Superbonus home-renovation credit.
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