Giorgia Meloni has praised the Italian economy during an interview with Milano Finanza on Ferragosto, highlighting what she describes as encouraging data while attributing ongoing challenges to past policies. She claimed the stability ensured by her government allowed Italy to navigate one of the most difficult economic situations in recent decades. According to her, the GDP per capita increased by nearly 4,500 euros compared to 2022. However, she acknowledged that growth remains among the lowest in Europe, citing structural issues such as low labor productivity linked to the dominance of small and medium-sized enterprises. Meloni emphasized that reversing this trend would take many years. In the same interview, Meloni shifted responsibility for economic shortcomings onto previous governments, particularly referencing the “catastrophic situation inherited” from the Superbonus policy implemented under the previous administration. She described the Superbonus as a “disaster” that negatively impacted public finances, despite acknowledging that some extensions were approved by her party. She also highlighted measures aimed at supporting the purchasing power of middle-income groups, including reductions in income tax and adjustments to fringe benefits. She noted that these efforts have resulted in annual savings of 21 billion euros being returned to citizens' pockets. The Italian economy's performance in the second quarter of 2026 shows mixed results. According to preliminary estimates from Eurostat, the country’s GDP grew by 0.2 percent, which places it among the weakest performers within the European Union. This marks a slowdown compared to the 0.3 percent growth recorded in the first three months of the year. While the overall EU area saw a 0.4 percent increase in GDP, and the broader European region registered a 0.5 percent rise, Italy lagged behind its peers. The country's growth rate ranked below several other nations, including Germany and France, and placed it alongside Austria and Romania, both of which showed zero growth. Regarding public finances, the Bank of Italy reported that the debt of public administrations reached a new high of 3,207.2 billion euros in June, marking an increase of 26.2 billion euros from the previous month. This surge reflects several factors, including the budget requirements of public entities, an increase in liquid reserves held by the Treasury, and the effects of inflation-linked bond valuations and exchange rate fluctuations. The average maturity of the national debt remained unchanged at 7.9 years. The Bank of Italy further revealed that the share of Italian public debt held by foreign investors rose slightly, reaching 35.9 percent in June. Despite a marginal decrease in the portion held by the Bank of Italy itself, now standing at 16.7 percent, the proportion owned by non-residents continued to grow. Meanwhile, domestic holdings, primarily by families and non-financial corporations, decreased to 14.5 percent. Tax revenues for the first half of 2026 totaled 261 billion euros, representing a 1.4 percent increase compared to the same period in 2025. However, June alone saw a decline of 1.3 percent in tax collections, bringing total monthly revenue to 43.2 billion euros. These figures highlight the complex financial landscape facing Italy, balancing modest improvements against persistent challenges. As the government continues to frame its economic achievements, tensions persist regarding the role of past policies and the effectiveness of current initiatives. The debate over the Superbonus and its impact on public finances remains a contentious issue, with critics arguing that the policy exacerbated fiscal pressures rather than alleviating them. Meanwhile, the nation’s economic trajectory remains a subject of close scrutiny, with key indicators pointing to slow progress amid rising public debt and sluggish growth.
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