Government

Green light from the Council of Ministers to the new Def. GDP growth halved, 0.6% in 2025

The tax delegation is extended until 31 December 2025, aligning the deadline with that of the single texts

Sul tavolo del Consiglio dei ministri, riunito a Palazzo Chigi, il Documento di economia e finanza

6' min read

6' min read

Green light from the Council of Ministers to the new Def 2025, the first document of the year on the development of public accounts. "It was adopted in a very complex situation from a global economic point of view, with repercussions for the national economy, and all of this makes forecasts not only in the very long term but also in the short term very complicated and difficult, even aleatory," explained Economy Minister Giancarlo Giorgetti at a press conference.

GDP growth halved, 0.6% in 2025

"We have decided to adopt growth estimates aligned to those recently reduced by the Bank of Italy, so we have real GDP growth of 0.6% in 2025, 0.8% in 2026 and 0.8% in 2027, effectively halving the Plan's forecast which was 1.2%." The GDP-deficit was estimated at 3.3 per cent in 2025, 2.8 per cent in 2026 and 2.6 per cent in 2027, as indicated last autumn. The public debt-to-GDP ratio, on the other hand, will be 136.6 % in 2025, 137.6 % in 2026 and 137.4 % thereafter; slightly lower than last autumn's Dpb (136.9 % this year; 137.8 in 2026 and 137.5 in 2027). In the scenario contemplated even upcoming measures such as the Irpef cut for the middle class remain in doubt: all decisions 'will be calibrated to the context'.

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"Cool mind on duties and surgery"

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"I take note of this initiative by Trump, which I appreciate, it was what I was asking the new US administration at the G7 in Cape Town to focus on." The economy minister put it this way regarding the US president's decision to cooncede a 90-day pause on tariffs. "The macroeconomic impacts will also have to be assessed, we are trying to understand the direct and indirect ones, but we need to reason with a cool head, without putting public finance at risk, not to make interventions in a random and generic way, we need to be very surgical in order to be effective as well".

"On extension Pnrr any means as long as you get there"

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In Pnrr, according to Giorgetti, 'the issue of extension can be declined in many ways: there is Fitto's proposal on Cohesion funds, there is the proposal to set aside 10% of the Stem projects. I see that in a surreptitious and sideways way then you get to the end, any means is fine as long as you get to that end'.

In line with 2% defence spending

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"The defence spending at the moment maintains its original orientation and trend, we believe on the basis of our accounting criteria, which will eventually be discussed at Nato, to be in line with the 2% request," Minister Giorgetti further specifies. "The increase in defence spending requested by the Commission and NATO will imply making choices that we do not believe we can adopt at this time and will be made within the prescribed timeframe: there is a substantial request by the Commission to ask for the national exception clause with respect to the indicators by the end of April, so it is likely that in the resolution on the Def, Parliament will have to express its opinion because if we proceed in that direction we will have to make a deviation that envisages an enhanced voting procedure in the two Chambers.

The extension of the tax delegation has arrived

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Then a measure ('important') was approved in order to fully implement the tax reform, in line with the objectives set at the beginning of the legislature. In particular, the tax delegation is extended until 31 December 2025, aligning the deadline with that of the single texts, "a decision that will make it possible to consolidate the results obtained and to complete the interventions still in the pipeline" according to Maurizio Leo, deputy minister of the Economy and Finance.

"At the same time," Leo notes, "we extend the scope of the delegation in two points. The first point provides for the extension of the tax transaction to the taxes of the regions and territorial entities. By doing so, we offer complete and uniform instruments that can adequately meet the needs of taxpayers but also of other territorial entities. The objective remains that of building a modern, fair, and efficient tax system, capable of supporting economic growth, guaranteeing legal certainty, and strengthening the relationship of trust between State and taxpayer'. The second 'concerns the system, legal status and role of tax magistrates. This step completes the reference framework of tax litigation in order to ensure a more efficient system in line with the principles of due process'.

Defence Italian alimony, three new offences

Three new offences have been introduced 'that fill gaps in criminal protection and give a sign of extreme care for protected goods: one is the trade in foodstuffs with misleading signs, the other is food fraud and the third is 'agro-piracy', a new offence that targets fraudulent cases where there is a set-up and activities organised on a long-term basis'. The Minister of Justice, Carlo Nordio, anticipates the content of the bill for the defence of Italian food products to journalists. "For these crimes we are extending the possibility of telephone tapping and undercover activities. This is an important signal in the need to protect the consumer's good faith'.

"We hope that it will be approved very quickly by Parliament, if possible also with improvements, in order to make the rules effective and to intervene in the market dynamics that will obviously develop in the coming months," adds the Minister of Agriculture Francesco Lollobrigida on the subject, according to whom "this is a measure that affects a simplification that is useful for strengthening the competitiveness of companies that operate correctly on the market," he goes into detail, "we are going to guarantee the quality of products while also protecting our citizens.

Preliminary OK for Farnesina reorganisation

The Council of Ministers also dismissed, in preliminary examination, the Presidential Decree on amendments to the organisational regulations of the Ministry of Foreign Affairs and International Cooperation. The measure, promoted by Minister Antonio Tajani, aims to adapt the structure of the Farnesina to the challenges arising from the current international context, focusing on five main axes: improving the coordination of Italy's political projection actions; greater focus on the priority mandate of supporting businesses and exports; enhancing cyber security and technological innovation; greater attention to the service vocation towards citizens and businesses, including through administrative simplification; and the enhancement and training of human resources. The decree, reads a note from the Farnesina, will enter into force following the acquisition of the opinion of the Council of State and the parliamentary commissions, final approval by the Council of Ministers, and registration with the Court of Auditors.

Stretch Bridge, MIT: closer to starting work

The government members also said yes to the certification of the imperative reasons of overriding public interest (IROPI) for the construction of the bridge over the Strait of Messina. "This is an important step that brings the approval of the IROPI and the consequent go-ahead for the works closer. Great satisfaction on the part of Matteo Salvini," the Italian Ministry of Economic Development reported in a note. The bridge "is a priority work for the entire country and the opening of the construction sites is just a few weeks away. It means 120,000 direct and indirect jobs created throughout Italy; it means less pollution, with 200,000 tonnes of CO2 not emitted into the air; it means saving an hour and a half by car and two hours by train. And it means giving jobs to so many companies all over the country'.

First Yes to Reform of the Trentino-Alto Adige Statute

Finally, there is the preliminary go-ahead for the reform of the Trentino-South Tyrol Statute. "An historic first step forward that has been long awaited and has finally arrived. Today's is already a victory," said the Minister for Regional Affairs and Autonomies, Roberto Calderoli, on the sidelines of the Council of Ministers. "I had made a commitment with the Autonomous Provinces of Trento and Bolzano to carry out this historic challenge, and I intend to keep my word. We have provided for the restoration of autonomy standards, the updating of competences and the guarantee of the representation of language groups. Today's meeting in the Cdm is an important step. Now we will wait for the opinions and then we will return to examine it as a government, for final approval. Onwards and upwards'.

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