Bank of Italy Warns Deficit Above 3% Through 2027-28 Risks EU Exit Plan

The Bank of Italy is effectively flagging a credibility gap in Rome's fiscal exit strategy: the same plan meant to demonstrate consolidation keeps the deficit above the threshold that defines the problem. This matters most for Giorgetti, whose stated goal of closing the excessive deficit procedure now depends on projections that undermine it. The open question is whether the government adjusts the path or accepts a longer stay under EU scrutiny, and how that tension is read by whoever assesses Italy's fiscal credibility.