Meloni Confronts Italian 2024 Budget Deficit as Wide as 4.5% (1)

Prime Minister Giorgia Meloni is paring back her ambitions to bring Italy’s deficit toward the European Union’s 3% limit next year, according to people familiar with the matter.

The shortfall targeted for 2024 may now be as wide as 4.5% because of a weaker economy and the need to keep tax-cut promises to voters, said the people, who declined to be identified because such projections are confidential. The original projection envisaged in April was 3.7%.

The 2023 deficit is seen at as much as 5.5% amid weaker-than-expected economic growth of 0.8%, the people said. The finance ministry declined to ...