EZB8RISK / Market Briefing

Italy's budget update confirms the deficit dipping below the EU threshold next year before drifting back up in 2027, with debt projected to climb again and the finance minister urg

Italy's budget update confirms the deficit dipping below the EU threshold next year before drifting back up in 2027, with debt projected to climb again and the finance minister urging caution. The bond spread against German debt has kept widening, a sign markets are looking past the near-term consolidation toward the later slippage. Meanwhile, political noise around a contested antisemitism bill adds a domestic layer as Rome balances fiscal discipline against a softening growth picture.

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