Italy: is the government debt at the mercy of superbonus effects?

Italy's public finances were once again the focus of investor attention following major revisions to the deficit figures announced when Istat , the Italian statistical agency, updated its accounts. The accounting treatment applied to the so-called superbonus tax credit had a major impact on the deficit. Going forward, there are now two moot issues: Will the superbonus continue to have a negative impact on Italy’s fiscal deficit? What will be the medium-term effect of this deterioration in the fiscal deficit on the level of the country’s government debt, which is already extremely high compared with its European peers?