EU Commission to Criticize Italy for Weak Industrial Strategy, Seek Tax Reform

The European Commission will rebuke Italy for insufficient industrial planning and call for incentives to boost capital market investment and reform of the tax system in country-specific recommendations to be released on June 3, 2026. The criticism highlights Rome’s failure to develop robust policies to strengthen industrial competitiveness. The EU executive’s guidance, part of its annual economic governance cycle, urges measures to direct savings into productive investments and streamline Italy’s tax code to support growth. Italy faces mounting pressure to address structural weaknesses that have curbed productivity and economic resilience. The recommendations signal Brussels’ growing impatience with the pace of reform in the eurozone’s third-largest economy.