Italy Faces Wider Budget Deficits on Meloni’s Tax-Cut Plans (1)

Italy may slow down its deficit-reduction plans after the economy unexpectedly shrank, a move that would give the government leeway to continue spending on campaign promises such as more tax cuts.

This means Italy may not meet its deficit forecasts of 4.5% of gross domestic product this year and 3.7% in 2024, according to people familiar with the issue who spoke on condition of anonymity because discussions are ongoing.

The matter has not yet been discussed at ministerial level, the people said. The Finance Ministry when contacted said it doesn’t comment on speculation.

Finance Minister Giancarlo Giorgetti said at an ...