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Meloni's 2027 Re-election Hindered by Italy's Fiscal Breach

4/23/2026

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Story summary
  • Giorgia Meloni, Italian Prime Minister, faces a 2027 re-election setback after Eurostat confirmed Italy breached EU fiscal rules.
  • Italy's budget deficit reached 3.1% in 2025, triggering the excessive deficit procedure (EDP).
  • Italy's debt-to-GDP ratio rose to 138%, further constraining public expenditure.
  • The government aims to exit the EDP to support households amid rising energy costs, but the justice referendum defeat and the Middle East conflict's fallout complicate plans.