Italian towns grapple with multi‑million euro deficits after 2025 liquidity fund law

The municipal administration of Chieti approved its 2025 financial statement, which shows a €23.3 million deficit. The shortfall stems from a 2025 decree (law no. 25) that forces municipalities in financial distress to set aside the full amount of previously used liquidity‑advance funds, turning a projected €1.6 million surplus into a large deficit. Chieti will repay the fund over ten years at roughly €2.3 million per year, on top of existing loan payments amounting to about €6 million annually. The city has asked the Interior Ministry, ANCI and the Treasury for extraordinary measures and plans to request a national legislative amendment.

In Sicily, the regional government approved a draft law to endorse the 2021 regional accounts. The measure follows a similar approval for the 2020 accounts and is intended to restore fiscal credibility, unlock €264 million for upcoming budget adjustments and accelerate the completion of the 2022 accounts pending the Court of Auditors’ review.