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Italy will spend around 13 billion euros ($12.62 billion) less this year in European post-COVID recovery funds than it previously targeted, a Treasury document showed, underscoring the country's problems in implementing investment programmes.
Mario Draghi's outgoing Italian government on Wednesday slashed next year's economic growth forecast to 0.6% due to sky-high energy costs but said strong revenues would still ensure an improvement in public finances.
By Giuseppe Fonte and Gavin Jones
Italy sees its 2023 budget deficit below 5% of national output despite a darkening economic outlook triggered by the energy crisis, three sources close to the matter told Reuters.
Mario Draghi's outgoing Italian government is preparing to cut its growth estimate for 2023 to just above 0.5% as the energy crisis weighs on the euro zone's third largest economy, sources said ahead of official publication of the new economic forecasts next week.