Analysis-Italy's Meloni needs urgent fix for ballooning pensions bill

FILE PHOTO: A woman shops at Campo de' Fiori market in Rome, Italy, June 15, 2022. REUTERS/Guglielmo Mangiapane//File Photo

ROME (Reuters) - Italy's new prime minister Giorgia Meloni needs urgently to rein in a bloated pension system which absorbs most social spending and looks increasingly unsustainable in the face of surging inflation.

Rome already has the highest pension bill in the 38-nation Organisation for Economic Cooperation and Development, and says outlays will climb by 58 billion euros ($60.35 billion), or 19.5%, by 2025 as rising prices boost index-linked payouts.