Foreign investors and households increase their role while the central bank reduces its exposure
Italy’s public debt structure has undergone a significant transformation. In 2025, the composition of investors holding Italian government bonds shows a growing presence of foreign investors and households, while the role of the Bank of Italy has declined compared to the years of extraordinary monetary policies.
According to an analysis by the Unimpresa Research Center, based on official data from the central bank, Italy’s public debt reached €3.095 trillion.
Foreign investors now hold the largest share, owning €1.061 trillion in Italian government bonds, equivalent to 34.3% of the total debt.
Table of Contents
- Foreign investors return to Italian government bonds
- Italian households increase their participation
- Italian banks remain a key pillar
- The gradual withdrawal of the Bank of Italy
- A more diversified and resilient debt structure
Foreign investors return to Italian government bonds
The most notable development is the strong comeback of international capital.
In 2025 foreign investors surpassed €1 trillion in Italian debt holdings for the first time, reaching €1.061 trillion.
Compared with 2024, their investments increased by €145.8 billion, while the comparison with 2022 shows a rise of more than €330 billion in just three years.
This trend highlights renewed international confidence in Italian sovereign bonds.
Italian households increase their participation
Italian households have also significantly increased their exposure to government bonds.
In 2025 households hold €448.9 billion, accounting for 14.5% of total public debt.
This represents a major increase from €262.8 billion in 2022, confirming the growing role of domestic savings in financing the state.
Government bond programs targeted at retail investors — such as BTP Italia, BTP Futura, and BTP Valore — played a key role in this shift.
Italian banks remain a key pillar
Italian banks continue to be a major investor category.
In 2025 they hold €622.2 billion, or 20.1% of total public debt.
However, their share has declined compared with the peak reached during the European sovereign debt crisis, when banks held over 30% of Italian government bonds.
The gradual withdrawal of the Bank of Italy
Another major change concerns the role of the Bank of Italy.
During the ECB’s Quantitative Easing program, the central bank became one of the largest holders of Italian government bonds.
In 2022 it held €721 billion, equivalent to 26.1% of public debt.
By 2025 this amount had declined to €574 billion, or 18.6% of the total, reflecting the normalization of European monetary policy.
A more diversified and resilient debt structure
According to Unimpresa President Paolo Longobardi, the shift represents a structural strengthening of the Italian financial system.
He stated:
“The diversification of investors shows that Italy is capable of attracting capital both domestically and internationally.”
A broader and more balanced investor base reduces systemic risks and strengthens the resilience of the Italian government bond market.
This post is also available in: Italiano (Italian)