Italy's new budget lands with a familiar trade-off: the deficit dips below the EU's threshold next year before climbing again in 2027, and scaled-back defense spending is doing the
Italy's new budget lands with a familiar trade-off: the deficit dips below the EU's threshold next year before climbing again in 2027, and scaled-back defense spending is doing the fiscal heavy lifting. The bond spread against German debt keeps widening anyway, suggesting markets are weighing the near-term consolidation against the projected backsliding. With euro zone inflation still warm and the Eurocoin growth gauge softening, Rome is navigating tighter rates against a weakening growth backdrop.
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