It will remain stable in 2008 at a relatively high level by international standards. During 2007 the unexpected revenue has mostly been used to fund increased spending. Similar choices have been made for the 2008 budget, which increases the deficit in relation to that on a current legislation basis. The progress in reducing the budget imbalances is modest.
The measures needed to balance the budget are put off to the three-year period 2009-11. In the two years 2007-08 the ratio of primary current expenditure to GDP will remain constant at the highest levels recorded in recent decades. The key issue for the public finances in Italy is curbing primary current expenditure.