Italy hikes 2023 debt issuance as public finances creak
By Sara Rossi and Valentina Consiglio
MILAN/ROME (Reuters) -Italy on Friday increased its estimate for debt issuance this year due to its worsening state finances and delays in transfers from the European Union, the only major euro zone country to do so.
The upward revision comes as Rome's borrowing costs are steadily increasing amid growing scrutiny from investors concerned about its weakening economy and fiscal slippage.
In its issuance programme for the fourth quarter released late on Friday the Treasury raised its estimate for gross debt issuance this year to 333 billion euros ($351.95 billion).
That compared with its forecast of 310-320 billion euros made at the start of the year.
The increase will push up Rome's record 2.85-trillion-euro public debt, already the second highest in the euro zone as a proportion of gross domestic product (GDP) after Greece's.
Other European countries have moved differently this year.
Germany reduced its needs in the fourth quarter by 31 billion euros ($32.59 billion). Portugal and the European Union took similar steps.
France raised its bond issuance next year due to an increase in debt redemptions but left unchanged its plan for this year.
Forecasts approved by the government on Wednesday estimated the debt-to-GDP ratio would be stable at around 140% from 2023-2026, rather than declining towards 60% as was required under European Union budget rules before they were suspended in 2020 due to the COVID-19 pandemic.
The Treasury's latest Economic and Financial Document issued on Saturday also projected 23.5 billion euros of measures through 2025 to be financed through extra budget deficit.
DELAYED EU FUNDS
The Italian government's funding needs are being further complicated by its
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