Italy's colossal public debt surpasses an astounding three trillion euros. This staggering figure poses significant challenges for the country's economic future.
Italy's public debt has soared to an alarming figure of over three trillion euros, making it Europe's debt titan next to France. This skyrocketing debt, a 23.9 billion euros increase in November as per Italy's national bank, has brought Italy's total public debt to a staggering 3,005.18 billion euros.
Italian Prime Minister Meloni, despite her efforts, hasn't managed to halt this debt surge. Tracing back to 2009, Greece was also plagued by a similar situation, their debt reaching a debt-to-GDP ratio of 153%. However, Greece has since shown phenomenal recovery.
Italy, suffering under a debt-to-GDP ratio of 136.8%, lags far behind Germany's comparatively more manageable 62.9%. Greece, under the leadership of Kyriakos Mitsotakis, has managed to transform its economic landscape, boosting its GDP by 2.1% in 2024 and 2.3% in 2025, with a predicted debt-to-GDP drop to 147%.
Greece's turnaround can serve as a guiding light for Italy, urging the implementation of strategic measures. Fiscal discipline, investment in infrastructure, tax reforms, and smart debt management are current hot topics in the economic sphere.
For instance, Greece's Mitsotakis government has carried out extensive fiscal adjustments, tax reductions, and infrastructure investments, contributing significantly to its recovery. Greece's debt reserves have been fortified to facilitate debt repayment and attracted investors with its investment-grade rating, a clear sign of economic progress.
Italy can learn from Greece's success story by adopting such strategies, aiming to bring Italy's debt to a level comparable to Germany's more manageable ratio. The EU Commission has proposed several comparative strategies for Italy, including fiscal discipline, investments in infrastructure, tax reforms, and debt management, among others. By embracing these changes, Italy may very well walk Greece's successful path.
France, with a more manageable debt-to-GDP ratio of 100%, serves as a contrast to Italy's current situation. France, like Greece, has also experienced debt challenges in the past but has since recovered effectively.
Given Italy's close proximity to France, both in geographical and economic terms, Italy could draw inspiration from France's debt management strategies to aid its own recovery. France, despite its challenges, has been successful in maintaining a debt-to-GDP ratio within the EU's thresholds, something Italy aspires to achieve.
