Italian Economy Minister Giancarlo Giorgetti has assured the public that the nation’s public finances are in order, ruling out the need for any corrective budget measures or new austerity policies. Despite the “pressure” from increased defense spending, he stated that economic growth is expected to align with current estimates of 0.6% for this year.
Speaking to business leaders at the Forum in Cernobbio, Minister Giorgetti credited the “serious and responsible approach” of the Ministry of Economy and Finance (MEF) for these positive results, which have garnered market approval and political consensus. He confirmed the next budget law will not introduce any new fiscal tightening.
Giorgetti dismissed recent media reports about potential measures, including a tax on banks or share buybacks, as a “pyrotechnic series of fanciful proposals” about which he “knows absolutely nothing.” He compared the speculation to the summer transfer window in soccer, calling it a “budget-manoeuvre market” in August and September, and clarified that the government has yet to begin discussions on the overall framework.
Echoing this stance, League party leader Matteo Salvini, also present at the forum, declined to comment on the budget, deferring to his colleague Giorgetti.
The minister outlined one clear priority for the upcoming budget: implementing further “significant” fiscal interventions to support households. These measures must comply with European spending rules and account for the economic variable of the Russia-Ukraine war. The associated rise in defense spending, Giorgetti noted, creates greater pressure on public accounts that must be evaluated to ensure it doesn’t compromise broader economic policy goals.
Giorgetti also emphasized that meeting international defense commitments must be paired with a significant effort from the national defense industry. He described the task as “almost sudden and titanic” but vital. Without the participation of Italian companies, he warned, increased defense spending would merely burden public finances without generating domestic production and employment returns—a point he has stressed to state-owned companies.