The decline in borrowing costs freed up 13 billion euros of space, significantly improving Italy's finances.

Informed sources revealed that Italian officials preparing the government budget expect that a decrease in borrowing costs will provide the government with up to an additional 13 billion euros of fiscal space. These sources said that this includes saving 5 billion euros this year, as well as an expected saving of 8 billion euros in 2026. Due to the confidential nature of the calculations, these sources requested anonymity. They also stated that the Italian government will use this data in the budget modeling process, which must be submitted to Parliament by mid-October. Despite the uncertainty of these calculations, the fiscal benefits of billions of euros highlight that under Prime Minister Meloni's leadership, fiscal discipline and political stability are jointly driving improvements in public finances.