In Italy, high debt and borrowing costs will limit any fiscal giveaways in the Meloni government's final preelection budget and prevent any government that emerges from the 2027 election from substantially loosening fiscal policy. But given anemic growth, rising spending needs and a lack of structural reforms, Italy's debt is unlikely to decline significantly in the coming years, leaving the country exposed to market pressures even as eurozone safeguards make a financial crisis unlikely. On Sept. 22, Italy's national statistics office confirmed that the 2025 budget deficit came in at 3.1% of gross domestic product, down from 3.4% in 2024 but still above the 3% of GDP limit set by EU fiscal rules . A European Commission spokesperson confirmed the same day that Italy, pending its validation of the data Oct. 21, will therefore remain under EU excessive deficit procedure.