Italy's growth forecast rises to a maximum of 1%, giving Meloni more room in the budget plan

Italian Prime Minister Meloni hopes to introduce a budget before the elections that can both attract voters and reassure coalition partners, and Italy’s economy is providing support for this effort. Finance Minister Giorgetti currently forecasts that Italy will grow by up to 1% this year, higher than the previous prediction of 0.6%, giving the government potential fiscal space at a critical juncture in the political cycle. This more optimistic outlook could unlock billions of euros, enabling Meloni and her cabinet to fund promised tax cuts while remaining compliant with EU rules. Veronica De Romanis, a professor of political economy at Luiss University in Rome, stated: “Considering this year's economic growth so far, I think growth between 0.8% and 0.9% is very likely. All the data helps send the message to the public that ‘things are moving forward.’”