Meloni's Fiscal Leadership: Italy's Economic Rebound

Italy's Prime Minister Giorgia Meloni pledges responsible governance amid parliamentary budget debates aimed at bolstering the euro zone's third-largest economy while reducing debt. With support from ratings agencies and investors, Meloni emphasizes stability as Italy projects growth and tax measures in its 2025 financial plan.

Italy's Prime Minister Giorgia Meloni affirmed on Sunday her commitment to leading the nation responsibly until the end of her mandate. She addressed parliament as it debates a crucial budget designed to uplift the euro zone's third-largest economy, while simultaneously trimming its national debt.

This year, Rome was placed under the EU's excessive deficit procedure. The government aims to lower its deficit to below the European Union's 3% of GDP threshold by 2026, down from this year's target of 3.8% and last year's 7.2%. As Italy's parliament begins discussions on the 2025 budget on Tuesday, the completion deadline looms at December 31.

Meloni communicated a sense of responsibility at a Brothers of Italy party meeting, underlining Fitch and DBRS's recent shift in Rome's outlook to "positive" due to an improved fiscal pathway. The narrowing premium on Italian bonds has invigorated investor interest, contrasting with France's current political and fiscal challenges.

(With inputs from agencies.)