Italy

The U.S. State Department's 2026 Investment Climate Statement, published in September, again describes Italy as an attractive destination with a large market and a skilled workforce, noting that foreign-owned firms account for about 21% of sales and 37.6% of business R&D spending. It also says the Golden Power screening regime has affected recent transactions by both U.S. and EU firms, across sectors from energy and telecoms to banking, food and space, so buyers in those sectors should plan for screening when setting deal timelines.

U.S. Department of State · 2026-09-30

No significant developments identified in this section for the reporting period.

Aperture editorial note · 2026-10-10

Istat's provisional estimate put consumer prices up 0.7% on the month and 4.2% on the year in September 2026, compared with 3.3% in August. That is the highest rate since September 2023 and well above the 1.5% average for 2025, so firms entering now face much faster growth in wages, rents and input costs than recent history suggests.

Istat · 2026-09-30

On 2 October the government raised its 2026 GDP growth forecast to 1% (from 0.6%) and its 2027 forecast to 0.8%, and raised the 2027 deficit target to 3.4% of GDP, from 2.8%, by using the EU's national escape clause to spend about €29 billion more on defence and energy over two years, pushing back the start of debt reduction to 2028. Entrants should expect fiscal support aimed at energy and defence, and continued pressure on government borrowing costs, rather than broad tax relief.

Reuters (via U.S. News & World Report) · 2026-10-02

Confcommercio's research office estimates the economy grew only about 0.1% in the third quarter compared with the second, and warns that energy costs linked to the Middle East are the main risk for 2027. Activity is holding up, but demand growth is thin, and higher energy costs could weigh on household spending in sectors that sell to consumers.

Confcommercio (via Format Research) · 2026-09-18

On 8 October the lower house gave final approval, by 227 votes to 164, to Prime Minister Meloni's electoral reform, a fully proportional system with a seat bonus that guarantees a majority to any alliance winning more than 42% of the vote, which will govern the national election due in 2027. The law is designed to produce stable majorities, but the opposition has contested it strongly and a constitutional challenge is likely, so firms making long-term plans should allow for political uncertainty until the election.

Reuters (via U.S. News & World Report) · 2026-10-08

Reuters reports that since a new far-right party, National Future, emerged in February, polls have shown Meloni's coalition trailing the centre-left, although the coalition is still Italy's longest-serving government since the Second World War. The 2027 budget is its last before the election, which makes policy changes on taxes, subsidies and energy support more likely to be shaped by electoral considerations over the next year.

Reuters (via U.S. News & World Report) · 2026-10-08