Growth nearing 1% of GDP and higher revenues: what it means for the 2027 Budget Law
According to economist Pietro Reichlin, speaking to Euronews, the 1% forecast "is realistic, but Italy remains last in the EU". Growth is not enough to widen the room for the 2027 budget, held back by structural flaws like low productivity and an ageing population.
The Italian economy is on track for growth exceeding 1% of GDP in 2026, according to Economy Minister Giancarlo Giorgetti. This projection of 0.8% growth so far this year, up from the government's previously projected 0.6%, indicates potential for higher revenues. Finance Minister's figures show tax revenues rose 2.8% in the first half of 2026, with direct taxes increasing 3.2% and indirect taxes up 2.2%.
Economist Pietro Reichlin sees this as a realistic estimate, but warns that Italy lags behind other EU countries due to structural issues like low productivity and aging population. The positive economic outlook may prompt a cautious 2027 Budget Law, as increased revenues won't automatically resolve fiscal challenges.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
