ISTAT confirmed Italy's deficit at 3.1% of GDP last year, above the EU's 3%
ceiling, delaying Rome's exit from the Excessive Deficit Procedure (EDP). The
result is a political setback for Prime Minister Meloni; her government, which
had hoped for an upward revision, still aims to end EU scrutiny next year but
will face tighter fiscal constraints as it seeks to raise defence and energy
spending amid Middle East tensions and ahead of next year's national election.
