Eurogroup statement on the updated draft budgetary plan of Italy

The Eurogroup welcomes the submission of the updated draft budgetary plan for 2023 of Italy on 24 November, as well as the Commission opinion issued on 14 December 2022.

We recall that the fiscal guidance for 2023 included in the Council recommendations of 12 July 2022 differentiated between member states with high debt levels and those with low/medium debt levels, depending on their fiscal and economic situation. Member states with high debt levels should pursue a prudent fiscal policy, in particular by limiting the growth of nationally financed primary current expenditure.

According to the Commission assessment, the draft budgetary plan of Italy is in line with the fiscal guidance for 2023 contained in the Council recommendation to Italy. We agree with the Commission’s assessment and in particular welcome that the plan aims to preserve nationally financed investment in 2023. Investment will also be supported through the Recovery and Resilience Facility.

We acknowledge that there is a need to accelerate fiscal-structural reforms, which would strengthen potential growth, competitiveness and debt sustainability.

We will in 2023, for Italy, as well as for all euro area member states, examine the budgetary measures to mitigate the impact of high energy prices as outlined in our statement on the draft budgetary plans from 5 December 2022.

The Eurogroup will continue to closely monitor economic developments in the euro area and commits to further reinforce policy coordination, in order to deliver a determined and agile policy response.