Nervous financial markets and high debt: How much election campaign can Meloni afford?
Ahead of the 2027 election, pressure is growing in Italy to cut taxes for citizens. But rising yields are driving up interest costs. Meloni's latest budget will be a test of her fiscal discipline.
Italy's Prime Minister Giorgia Meloni faces a dilemma as she prepares the last budget of her term, with elections scheduled for 2027. Despite campaign promises to cut taxes, rising bond yields are driving up borrowing costs, with the yield on 10-year Italian bonds reaching 4.6%, the highest since November 2023. Finance Minister Giancarlo Giorgetti warned of "dark clouds" on the horizon, with interest payments on the debt expected to reach €104 billion in 2027, four billion more than previously forecast. Italy's high debt burden, equivalent to 138.6% of GDP, makes it vulnerable to interest rate rises.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
