By Sara Rossi MILAN (Reuters) - Italy's public debt rose further in November, exceeding 3 trillion euros ($3.1 trillion) and hitting a record high, the central bank of the euro zone's third-largest
Italy's Public Debt Surpasses 3 Trillion Euros Record
By Sara Rossi
MILAN (Reuters) - Italy's public debt rose further in November, exceeding 3 trillion euros ($3.1 trillion) and hitting a record high, the central bank of the euro zone's third-largest economy said on Wednesday.
The sustainability of Rome's huge public debt has long been seen as a crucial factor for the survival of the euro zone, and Italy has been the most sluggish economy in the bloc since the launch of the single currency around 25 years ago.
Italy's debt climbed to 3,005.2 billion euros in November, compared with 2,981.3 billion euros in the previous month, Bank of Italy data showed.
The country's public debt - already the euro zone's second-largest after Greece in relation to gross domestic product (GDP) - is forecast by the government to rise to around 138% of GDP in 2026, from 135% in 2023.
If economic growth in 2025 comes in significantly below the government's 1.2% target, as most forecasters expect, the debt-to-GDP ratio is due to increase further.
As a consequence, markets may become more reluctant to buy Italian bonds, increasing the government's debt-servicing burden.
As a percentage of total government spending, that burden stood at 6.8% in 2023, the latest available figure, down from 7.5% a year earlier, according to Italian Treasury and UniCredit data.
Rome, which was put under the European Union's excessive deficit procedure last year, hopes to bring its deficit below the EU's 3% of GDP ceiling in 2026, from 3.8% targeted last year and 7.2% in 2023.
($1 = 0.9705 euros)
(Reporting by Sara Rossi. Editing by Alvise Armellini and Mark Potter)
