Italy's debt-to-GDP ratio rises, reversing recent decline
Eurostat data show Italy's debt-to-GDP ratio climbing after two months of declines, with the European Commission projecting further increases through 2027
Published
Italy's debt-to-GDP ratio stood at 138.9% in the first quarter of 2026, according to Eurostat data published in July, marking a rise after debt levels had fallen in June and July.
The European Commission's economic forecast projects the ratio reaching 139.2% by the end of 2027, up from 137.1% in 2025.
The increase breaks with the recent pattern of falling government debt and comes as European governments face pressure to raise defence spending amid ongoing geopolitical uncertainty. A reversal in Italy's debt trajectory is bearish for Italian sovereign credit and could weigh on financial stocks if banks' sovereign risk exposure grows as a result.