ROME (Reuters) – Italy will target its budget deficit at around 2.2% of gross domestic product next year, falling to 1.8% in 2021 and 1.4% in 2022, a political source said on Saturday.
Economic growth is seen around 0,6% next year, and rising to 1.0% in each of the following two years, according to a draft of the targets seen by the source.
Cabinet is due to sign off on the new targets contained in the Treasury’s Economic and Financial Document (DEF) at a meeting on Monday.
The targets are still subject to possible marginal revisions ahead of Monday’s meeting, the source said. In particular the 2020 deficit goal could be lowered to 2.1% depending on ongoing negotiations with the European Commission.
(Reporting by Gavin Jones, writing by Giulio Piovaccari)