Italy heading towards a 3 trillion debt

Italy’s Public Debt Approaching €3 Trillion

Italy’s public debt continues to rise, getting closer and closer to the €3 trillion mark.
According to Bank of Italy, in June, the country’s debt increased by another €30.3 billion compared to May, reaching a total of €2,948.5 billion.
The report also highlighted another record: the value of State bonds held by retail investors has reached its highest level since the introduction of the euro.

Details on the Increasing Debt in Italy as of June

The Fabbisogno e Debito Bulletin released by Via Nazionale reiterated how heavy a burden public debt is for Italy’s finances.
In May, the debt level rose compared to April, reaching €2,948.5 billion.
Compared to the same month last year, Italy has accumulated approximately €100 billion more in debt.

Bank of Italy specified that the increase reflects the needs of public administrations (€15.3 billion), the growth in Treasury’s liquid assets (€13.5 billion, reaching €45.4 billion), as well as the effects of premiums on issuances and redemptions, the revaluation of inflation-indexed securities, and changes in exchange rates (€1.4 billion).

Who Holds the Most Italian Debt?

As of May, the data indicated that 23.1% of the debt is held by Bank of Italy (down from 23.3% the previous month), 28.9% is in the hands of non-residents (compared to 28.8% in the previous month), and other residents (mainly households and non-financial corporations) hold 14.3% (up from 14.1% before).

Regarding the value of State bonds, retail investors own a record €363.176 billion in debt, the highest value since the euro came into circulation.
Reuters calculated that the percentage held by households and non-financial corporations compared to the total in circulation in May reached 14.9%, up from 14.6% the previous month and 10.8% in May 2023.