Economy Minister Giancarlo Giorgetti announced a multi-year economic framework aiming to reduce the fiscal gap to 2.8% of GDP by 2026, below the European Union's 3% ceiling.

Despite a reduction in economic growth forecasts due to instability from U.S. trade tariffs, Italy's government has committed to maintaining a budget deficit of 3.3% of national output in 2025.

However, the U.S. President's subsequent announcement of a 90-day suspension of many tariffs could potentially have a positive impact on Italy's growth forecasts, according to Giorgetti.

Italy's public debt is projected to reach 136.6% of GDP in 2025, slightly down from a previous estimate of 136.9%, but it is expected to rise to 137.6% by 2026 before decreasing to 137.4% in 2027.

Overall, Italy's economic performance has been lackluster since mid-2024, marked by very modest growth.

The Italian government plans to move forward with a sell-off of state assets valued at around 20 billion euros, although current market conditions will require a cautious approach.

Market turmoil in Italy has been exacerbated by U.S. President Donald Trump's recent announcement of sweeping trade tariffs, which has created uncertainty in the country's economic outlook.

Italy is currently under an Excessive Deficit Procedure by the European Commission, and the new budget framework is designed to ensure compliance with EU fiscal rules.

Following Trump's announcement, the Milan bourse has seen a significant decline, with a 15% drop and rising bond yields since April 2, 2025.

The Italian economy has experienced minimal growth, with GDP increasing by just 0.1% in the fourth quarter of 2024 following stagnation in the third quarter.

Giorgetti reiterated the commitment to the planned sale of state assets worth approximately 20 billion euros, stressing the importance of caution amid ongoing market instability.