League senator calls for Italy to break with EU deficit rules
A senior figure from the right-wing Lega party has called on Prime Minister Giorgia Meloni to abandon the European Union's 3% deficit target and pursue what he termed a "courageous budget" to protect Italy from a possible recession.
Senator Claudio Borghi, speaking about the upcoming budget law, said the government should stop trying to hit the EU deficit ceiling and instead pump more money into the economy. Italy's economy is in a far stronger position than three-quarters of Europe, Borghi argued, dismissing concerns about compliance with Brussels as a "Calimero syndrome" — a reference to the cartoon character who feels small and persecuted.
The comments put the Lega at odds with the Treasury ministry's official line. Economy Minister Giancarlo Giorgetti has committed to bringing Italy's deficit below 3% of GDP in 2026, targeting 2.8%, which would mark the first time Italy meets EU fiscal rules since before the pandemic.
What the League wants
Borghi, who serves as a senator for the Lega, said he understood Giorgetti's prudence but warned that conditions were deteriorating. "Approaching the storm requires putting more money into circulation", he said.
He listed two non-negotiable priorities for the budget:
• "Quota 64" — a pension measure linking payouts to contributions
• Flat tax — a single-rate tax system
Borghi defined a "courageous" budget not as reckless, but as one that anticipates future recessions rather than waiting for them to arrive. "When we say we need a courageous finance law, it does not mean being imprudent," he told reporters, "but moving ahead of possible future recessions."
The reality of Italy's public finances
The senator's claim that Italy's economy outperforms most of Europe faces statistical headwinds. Projections from the Bank of Italy, the OECD and the European Commission show Italy's GDP growth in 2026 hovering between 0.5% and 0.9% — generally below the eurozone average of around 1%.
Italy's public debt tells a starker story. Eurostat data puts the debt-to-GDP ratio at 138.9% at the end of the first quarter of 2024, compared to a eurozone average of roughly 89%. Italy is on track to become the most indebted nation in the currency bloc.
What this means for residents: Italy pays more in interest payments on its debt than most peers, leaving less room for tax cuts or public investment without risking market confidence.
Where the government stands
Giorgetti has signaled that Italy will request flexibility from Brussels using a "national safeguard clause" for 2027 and 2028, allowing extra spending on defense and energy. The government has asked the European Commission for approximately €29 billion in flexibility over those two years.
But for 2026, the official position remains strict adherence to the deficit target. Italy aims to exit the EU's excessive deficit procedure in 2027 based on 2026 data. Missing that target would extend EU oversight and limit Rome's freedom to set its own fiscal policy.
The gap between Borghi's proposals and the Treasury's commitments highlights an ongoing negotiation within the governing coalition. For now, residents should not expect a radical shift in fiscal policy — Giorgetti's line on prudence still holds.
