Lower yields on public debt could ease pressure on the budget law and boost market confidence
A historic opportunity for Italy’s public finances
According to Unimpresa’s Research Center, the drop in the spread between Italian BTPs and German Bunds to 100 basis points marks a major opportunity for Italy’s public accounts. The lowest level in years, this threshold means lower interest costs on public debt and a potential €10 billion saving by 2026.
Lower debt costs: how the numbers add up
The Italian Treasury rolls over about €350 billion in debt each year. A 50-point reduction in the spread translates into a €1.75 billion saving per year, or €3.5 billion in two years. Including new issuances to cover deficits, the volume could reach €850 billion, pushing potential savings to €10 billion.
Rating, confidence and growth
The drop in the spread reflects increased investor trust. It improves Italy’s creditworthiness, lowers borrowing costs, and attracts foreign investment. Banks also benefit from higher values of existing BTPs, improving their balance sheetsand ability to lend to families and businesses.
Political impact beyond the numbers
Unimpresa’s vice-president Giuseppe Spadafora highlights that this is not just about numbers: “Freeing up billions in debt service means we can lower taxes, support public investments, or enhance welfare.” Every basis point matters as EU fiscal rules tighten again.
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