Rome (Italpress) – The Council of Ministers gave the green light to the update memorandum submitted to the Minister of Defense. Growth estimates are revised downward from estimates formulated in the spring using Def. For this year, GDP will be 0.8%, for 2024 the forecast is set at +1.2%. This estimate raises the deficit-to-GDP ratio to 4.3%, from 3.7% in the scenario with no policy changes. The ratio of public debt to GDP is 140.1% and the unemployment rate is 7.3%.
“We have updated the economic framework with regard to two factors: restrictive monetary policy and the consequences of the conflict in Ukraine. The updated GDP for this year is 0.8%, 1.2%,” said Economy Minister Giancarlo Giorgetti, at the press conference held at the conclusion of the Cabinet meeting. For the year 2024, 1.4% for the year 2025, and 1.6% for the year 2026.
“We have updated the fiscal targets we reported to the European Commission: for this year net debt rises to 5.3%, with an increase of 0.9% due to construction bonuses. We have set next year at 4.3%, and this should allow us to confirm interventions,” he added. “Basic, in particular, reducing the tax wedge, birth rate bonus measures and renewing the public employment contract.” He explained that “the public debt is largely stable, and it is not decreasing as hoped for by the bill to pay off the super bonus.”
For the Minister, “The public finance framework is inspired by the principle of seriousness and responsibility. It puts us in the context of re-discussing the rules of the Stability Pact. We believe we have done the right things. We do not respect the famous 3% deficit-to-GDP ratio under the circumstances, but it has been determined “The standard is at a completely reasonable level.”
In a post on Facebook, Prime Minister Giorgia Meloni confirmed how “today the government agreed to some important measures. We have launched NADEF, the framework that defines the next budget law. We are working on writing an economic maneuver in the name of seriousness and common sense. And to maintain the commitments we have made.” With the Italians: Enough wasting the past, all available resources are allocated to supporting low-income people, reducing taxes and helping families.”
– Photo: Palazzo Chigi –
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