Italian government debt

Italian government debt refers to the total amount of money Italy owes to lenders, including other countries, institutions, and investors. It accumulates when the government borrows funds to finance public services, infrastructure, or cover budget deficits. Debt is often issued through bonds, which investors buy with the expectation of receiving interest over time. A manageable debt level allows Italy to borrow at good terms, but excessive debt can lead to higher borrowing costs and financial instability. The government manages this debt through policies and economic growth strategies to ensure sustainable fiscal health.