Public debt, household share doubles

Households and businesses are back in the driver's seat when it comes to buying BOTs and BTPs. As of August 2025, they held EUR 442.4 billion of Italian public debt, or 14.4% of the total of EUR 3,081 billion (3,080.9 in September), almost double the 7.9% minimum recorded in 2021. This is the combined effect of high yields, the success of Btp dedicated to retail and a growing preference for instruments considered safe. The Btp value, in particular, has been placed, in the various issues since 2023, for an amount of 93 billion. This is highlighted by the Analysis & Research office of the Autonomous Federation of Italian Banks (Fabi). For secretary general Lando Maria Sileoni, this is a clear sign that 'Italian families are returning to invest in government bonds and are doing so because they have confidence. Confidence in the country, confidence in its social and political resilience, confidence in Italy's ability to go through a complicated international phase with more solidity than other major European partners. This does not happen by chance: families do not put their savings in BTPs if they do not perceive stability, continuity and a credible outlook'.

The presence of foreign investors is also growing strongly, rising to EUR 1,039.9bn, 33.8% of the total (a record in the last six years), up from 26.8% in 2022 and at the highest level in the last decade. International demand is therefore once again one of the main pillars of the Italian sovereign debt market. Against this trend, the Bank of Italy, which operates for the Eurosystem, reduced its exposure from EUR 721bn in 2022 to EUR 592.1bn in 2025, with its share falling from 26.1% to 19.2%, due to the end of ECB net purchases. Funds and insurance also fell slightly, now at 12.5% (386.3 billion), down from 15.8% in 2019.

Overall, the Italian public debt grows from 2,415.6 billion in 2019 to 3,080.9 billion in 2025. Italian banks continue to have more than 620 billion BOTs and BTPs 'on their books', a value that has remained substantially stable in recent years. In 2024 and 2025, the dynamic has shrunk, in absolute terms, to the lowest level of the period observed: 601.4 billion, or 21.7% of the total. The weight of the credit sector in total public debt fell sharply: from 26% in the pre-pandemic period to 20% in 2025. This declining share is not due to a disengagement of banks, but to the growth of overall debt and the increased role of foreign as well as household and corporate borrowers. Overall, from 2019 to date, the country's public debt has grown by 665 billion, an increase of 27.5 per cent. For Sileoni, the role of the banks remains fundamental: despite their declining relative share, they continue to guarantee over 620 billion of debt in their portfolios. A massive, structural presence, which once again testifies to the extent to which the banking sector is a pillar of the country's financial stability. The banks are playing their part, responsibly, as always: in the midst of the pandemic, when they were a dam, also thanks to the bank workers; today, with a prudent approach, but without shirking their duty. Then there is the chapter of foreign investors, who have returned strongly and now account for more than a third of our public debt. This is a political signal, before being an economic one. With Europe plagued by electoral tensions, institutional instability and weak growth - just look at what is happening in France and Germany - Italy is perceived as a safer port, a more reliable market, a country that guarantees greater continuity. This is where the difference can be seen: households, banks and international investors show three different dynamics, but they all converge on one point. Italy is now considered more stable and more credible than other major European countries. This is the real political key to the data,' comments Fabi's secretary general.

The distribution among the different holders shows a map that today appears much more articulated than in the last pre-pandemic year and also compared to the central phase of the health emergency. In the most complete snapshot, that of August 2025, foreign investors remain - as throughout the period - the main underwriters of Italian government bonds. They hold 1,039.9 billion, or 33.8% of the total, a higher share than in both 2021 and 2019. They are followed by the Bank of Italy, with 592.1 billion and a share of 19.2%, and Italian banks, which hold 620.5 billion or 20.1% of the debt. More distant are the funds and insurance companies, with 386.4 billion (12.5%). The most interesting figure, however, concerns households and businesses, whose exposure rises to 442.4 billion, reaching a share of 14.4%, the highest for the entire period and almost double the minimum marked in 2021. Overall, from 2019 to date, the country's public debt has grown by 665 billion, or an increase of 27.5%.