Italy's Economy Holds Steady Amid Inflation Risks as Banking Leaders Debate New Budget Measures — Economy and business

At the 102nd World Savings Day event organized by Acri in Rome, top financial officials discussed Italy's economic resilience and the implications of the upcoming budget law. While Bank of Italy Governor Fabio Panetta noted that the economy is performing better than expected despite energy shocks and rising rates, banking leaders expressed concern over increased fiscal pressure on institutions and foundations.

Rome hosted a significant event titled "Savings in a Changing Society" on October 30, 2026, marking the 102nd World Savings Day. Organized by Acri, the Association of Foundations and Savings Banks, the gathering took place at the Salone delle Fontane from 10:30 to 12:30. Key speakers included Economy Minister Giancarlo Giorgetti, Bank of Italy Governor Fabio Panetta, Abi President Antonio Patuelli, Ipsos President Nando Pagnoncelli, and Acri President Giovanni Azzone.

Governor Panetta highlighted that both the Italian and European economies are showing resilience beyond initial expectations. However, he warned that prospects remain clouded by an energy shock weighing on household budgets and corporate costs, alongside geopolitical risks and financial tensions. Panetta noted that while inflation is expected to stay above targets for some time, further official rate hikes might be necessary if price dynamics persist. He emphasized that monetary policy cannot prevent direct price increases from energy shocks but must prevent them from fueling a costly wage-price spiral.

Panetta also praised Italy's recent fiscal prudence, which has helped mitigate the impact of global interest rate hikes. He pointed out that the deficit has shrunk from 9% of GDP in 2020 to approximately 3%, leading several rating agencies to improve their credit assessments for the Republic and contain the spread against German bonds.

The discussion turned contentious regarding the new budget law, or "Manovra." Acri President Giovanni Azzone expressed surprise at a fiscal increase estimated between 60 and 70 million euros affecting banking foundations. Although modest relative to the state budget, Azzone argued this sum forces foundations to abandon philanthropic projects that could have supported 20,000 NEETs (young people not in education, employment, or training) or provided autonomy for 2,000 disabled individuals.

Abi President Antonio Patuelli voiced concern over the government's statements regarding the budget, suggesting a further increase in fiscal pressure through higher Ires and Irap taxes that would ultimately impact shareholders. Patuelli recalled the memory of past banking crises, noting that the sector paid 1.1 billion euros to clean up the Popolare di Bari, and urged reflection before the final law is printed.

In response, Economy Minister Giancarlo Giorgetti defended the budget as prudent, even more so than many desired. He stated that using a safeguard clause would keep the deficit below 3%. Giorgetti argued that all sectors must contribute to public finance recovery, particularly the financial system which has benefited significantly from state guarantees and Gacs in the past. While acknowledging the significant burdens on banks, he insisted they are absorbable over time without negative repercussions. Addressing Patuelli directly, Giorgetti remarked that while he had previously spoken of protecting a boat in a storm, "we are all on the same boat."

Regarding consumer behavior, an Acri-Ipsos survey revealed that Italians remain cautious savers. The data showed that 63% keep their savings in liquid form, 26% invest a small portion, and only 8% have invested the majority of their funds. Even when investing, protective and project-based goals prevail over pure return seeking. The share of Italians able to save without significant sacrifices remained stable at 45% compared to the previous year.

Sources: ANSA Economia.