Italian banks, insurers and state lender CDP will help fund 2027 budget, deputy PM says

Italian Banks and Insurers to Fund €5 Billion for 2027 Budget Amid Economic Strains

Italy's 2027 Budget Funding Plans and Economic Context

Financial Institutions' Role in Budget Funding

ROME, Oct 20 (Reuters) - Italian banks, insurers and other financial institutions including state lender Cassa Depositi e Prestiti (CDP) will be asked to fund next year's budget, Deputy Prime Minister Antonio Tajani said on Tuesday.

Planned Revenue from Financial Sector

• Italy plans to raise an additional €5 billion ($5.62 billion) from ‌the financial sector to finance tax cuts and spending hikes in its 2027 budget, the government's Draft Budgetary Plan showed last week.

Involvement of Broader Financial Sector

• "Work is underway across the entire financial sector, so not just banks and insurance companies. I believe Cassa Depositi e Prestiti and other institutions should also be involved," Tajani was quoted as saying by Italian news agencies.

Timeline and Political Context

Budget Announcement Schedule

• The government is expected to unveil its full budget sometime between next week and early November.

Political Stakes for Prime Minister Meloni

• Prime Minister ​Giorgia Meloni is putting together the 2027 budget - her last before national elections due next year - against a difficult ⁠economic backdrop.

Economic Challenges Facing Italy

Inflation and Borrowing Costs

• Surging fuel prices are driving up inflation, government borrowing costs are climbing, and public debt is expected to overtake Greece's this year as the ​highest in the 21-nation currency bloc.

Currency Exchange Rate

($1 = 0.8905 euros)

(Reporting by Giuseppe Fonte; Editing by Kirsten Donovan)