(Bloomberg) -- Italy’s government is confident economic growth will reach 1% this year, a crucial gauge for Prime Minister Giorgia Meloni to fulfill her debt-cut commitments with the European Union.
“I believe the government’s expectations for this year will be confirmed,” Finance Ministry Undersecretary Federico Freni told reporters on Saturday at the Ambrosetti Forum, in Cernobbio on Lake Como.
Freni didn’t elaborate on the measures or draft calculations that Meloni’s administration is discussing for the upcoming budget.
Meloni’s government aims to bring Italy’s deficit below 3% within the next two years to reassure Brussels officials scrutinizing its huge debts, according to people familiar with the matter.
Officials are targeting a shortfall of 2.9% in 2026 that would ensure the country is just under the ceiling required by European Union fiscal rules.
It’s not clear how Meloni’s coalition would achieve such an outcome, which could require aggressive cuts to public spending or reneging on giveaways promised to voters.
Freni also reiterated that Italy’s plans to privatize various state-owned businesses will need to be “carried out at the right time, without rush or anxiety”.
In July, Finance Minister Giancarlo Giorgetti said that an ambitious €20 billion privatization plan earlier announced by the government was still realistic.
--With assistance from Alessandra Migliaccio.
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