Confindustria warns energy shock could weigh on Italy’s growth
Updated
Summary
Confindustria warned that a worsening energy shock threatens Italian economic growth, forecasting 0.6% growth in 2027 versus 1% in 2026, matching the government’s forecast for that year.
It said the phaseout of free EU carbon permits could lead to capacity losses and further company closures.
Why it matters
Italy’s 2027 budget plan is expected to exceed the EU’s 3% of GDP limit, based on what the report describes as optimistic growth assumptions.
Italy’s debt-to-GDP ratio is currently 138.6% and is expected to surpass Greece’s this year, making Italy the eurozone’s most indebted country.