Rome – Italian Economy Minister Giancarlo Giorgetti confirmed that the government must reconsider its commitments to increase defense spending. This decision follows growing economic difficulties and rising pressure on public finances. The country also needs to address the global energy price crisis resulting from the war in Iran.
Giorgetti commented on the public finance document approved by the Council of Ministers today. He stated that budget margins have become extremely narrow. This tightness is due to a slight decline in public finance indicators. He pointed to the need for more decisive actions to deal with rising energy commodity prices through specific measures.
The minister added that the current phase requires redefining priorities. The government must reschedule planned increases in some sectors, including defense, due to existing financial constraints. These statements come amid expectations of a decline in Italy’s gross domestic product. The GDP is expected to drop by about 0.2 percentage points in 2026 and 0.8 percentage points in 2027. This reflect continued economic pressures and the impact of the global energy crisis on economic growth.