Goldman Sachs warns that Italy could have Europe’s highest public debt by 2028

France’s public debt crisis, which has led to a sharp rise in government bond yields, is intensifying concerns about Italy’s finances, Goldman Sachs analysts warn, as cited by CNBC.

Italy risks recording, by 2028, the highest level of public debt relative to gross domestic product among European countries, as the widening budget deficit puts additional pressure on the country’s finances.

The movement in French bond yields has brought renewed attention to the vulnerabilities of countries with high debt and significant financing costs. Rising interest rates in bond markets can increase governments’ debt-servicing expenses and limit the room available for investment or economic measures.

The Goldman Sachs warning comes as investors closely monitor European countries’ ability to reduce deficits and keep debt under control. For Italy, the combination of a larger budget deficit and rising borrowing costs could accelerate debt accumulation in the coming years.