Italy’s Budget Plan Aims to Maintain 1% GDP Growth Estimate, Says Junior Minister

Italy is set to reaffirm its projected economic growth estimate of 1% for this year in its medium-term structural budget plan, which will be submitted to the European Commission by September 20, according to a junior minister from the Treasury.

Economy Ministry Undersecretary Federico Freni communicated this expectation to reporters during the TEHA business forum in Cernobbio, stating, “I believe 2024 estimates will be confirmed … with GDP growth of 1%.”

Back in April, the Treasury projected a gross domestic product growth of 1.2% for 2025, following an anticipated growth of 1% for 2024 in the euro zone’s third-largest economy.

Freni did not provide any insights regarding the Treasury’s view on the economic trends for the forthcoming year. The budget plan is expected to include an updated assessment of Italy’s challenging public finances.

Italy is currently under an Excessive Deficit Procedure imposed by the EU, and the Treasury’s plan intends to address the fiscal gap in accordance with EU requirements while adhering to the latest reforms in the bloc’s fiscal rules. This infringement procedure mandates Italy to reduce its structural budget deficit—excluding one-off factors and business cycle fluctuations—by 0.5% or 0.6% of GDP annually.