Published by Global Banking & Finance Review®
Posted on October 3, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleItaly plans to borrow $14 billion from 2026-2028, aiming to support tax cuts while managing its deficit, according to the new budget plan.
ROME (Reuters) -Italy plans to increase its borrowing by 12 billion euros ($14 billion) between 2026 and 2028, slowing the reduction of the deficit to allow measures including tax cuts for middle-income earners, the Treasury showed in its multi-year budget plan.
The government has targeted the deficit to fall to 2.8% of gross domestic product (GDP) in 2026 from 3% this year, dipping to 2.6% in 2027 and 2.3% the following year.
Were policy to remain unchanged, Italy's fiscal gap would be on course for slightly lower deficits of 2.7% in 2026, 2.4% in 2027 and 2.1% in 2028.
That gives the government room to borrow about 2.3 billion extra euros in 2026, rising to 4.8 billion in 2027 and 4.9 billion in 2028, according to the new budget plan.
($1 = 0.8521 euros)
(Reporting by Giuseppe FonteEditing by Peter Graff)
Borrowing is the act of obtaining funds from a lender with the promise to repay the amount, typically with interest, over a specified period.
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period.
Debt instruments are financial assets that represent a loan made by an investor to a borrower, typically including bonds and mortgages.
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