excessive deficit procedure

Italy Set to Remain in EU Excessive Deficit Procedure Amid Energy Crisis

Italy's deficit of 3.1% in 2024 exceeded the EU's 3% threshold by 0.1 percentage points, keeping Rome in the Excessive Deficit Procedure. The European Commission is unlikely to let Italy exit the EDP in its June assessment, dealing a blow to Meloni's government ahead of a sensitive election year. Surging oil prices from the Middle East conflict have forced Italy to downgrade growth estimates and increase spending to shield households from energy costs, further complicating fiscal consolidation.