Italy's economy minister hinted on Sunday that the budget deficit would be set at around 2.2% of national output next year, stressing the need for flexibility as Rome tries to rekindle stalled growth without reigniting friction with the EU. Roberto Gualtieri said in an interview with RAI state TV that the 2020 deficit would be "a wise midway between 2.04% and 2.4%" of gross domestic product.
He made reference to last year, when the previous government originally set a 2019 deficit target of 2.4%, only to reduce it to 2.04% after an increase in yields on Italian bonds and a tussle with the European Commission. "We need to use all the flexibility available," he said. This year's deficit is seen at around 2.0% of GDP, Deputy Economy Minister Antonio Misiani said last week.
The cabinet is due to sign off on the new targets contained in the Treasury's Economic and Financial Document (DEF) at a meeting on Monday. On Saturday a political source said Rome would target its budget deficit at around 2.2% of GDP next year, falling to 1.8% in 2021 and 1.4% in 2022.