Italian local government debt falls to €105.4 billion

Italy's total unconsolidated local government debt stood at €105.417 billion at the end of 2025, marking a significant reduction from €123.490 billion recorded in 2020.

This downward trajectory reflects ongoing efforts to manage public finances at the sub-national level.

Consolidated debt also saw a decrease, falling from €85.586 billion in 2020 to €79.130 billion in 2025.

The debt is distributed across various local government bodies: Regions accounted for €35.471 billion, Municipalities for €29.464 billion, Provinces and Metropolitan cities for €4.839 billion, and other local government bodies for €9.356 billion.

These figures highlight the diverse financial structures and responsibilities within Italy's decentralized administration.

The data, compiled by Banca d'Italia, provides a comprehensive overview of the financial health of local entities, crucial for understanding broader public finance dynamics.

The majority of local government debt in 2025 stemmed from loans by resident MFIs and CDP, amounting to €57.733 billion.

Securities issued abroad totaled €5.147 billion, with domestic securities at €2.222 billion.

Other significant components included loans from non-resident MFIs (€2.961 billion) and other liabilities (€11.067 billion.

Geographically, the South and Islands region recorded the highest unconsolidated debt at €36.780 billion.

The Centre followed with €34.650 billion, while the North-West and North-East regions reported significantly lower figures.

These regional variations underscore diverse fiscal situations across Italy.