A budget worth around €26 billion, with measures aimed at workers, families, pensioners and businesses. The bill approved by the Council of Ministers must now go through parliamentary scrutiny, with approval due by December 31.
On the tax front, the package includes a cut to Irpef (personal income tax) for incomes up to €55,000, with a maximum benefit of around €500 a year. For the self-employed, the threshold for access to the flat tax would rise from €85,000 to €100,000.
For pensions, an €850 million fund for early-retirement flexibility is planned. According to Deputy Prime Minister Matteo Salvini, the goal is to allow retirement at 64 instead of 67 for workers born from 1960 onwards.
New measures for families include parental leave paid at 80%: the number of months would rise to four, increasing to five for a second child and six from the third child onwards. For every newborn, the national social security agency (Inps) would also open a pension account with an initial state contribution of €100, which parents could later add to.
Among the measures for young people is a €2,500 bonus for under-30s, taxed at just 1%. The bill also includes funding for installing air conditioning units and heat pumps in schools.
The National Health Fund would increase by €3.4 billion compared to 2026, of which €1 billion was already allocated under the previous budget. Part of the additional resources would go towards the salaries of emergency room doctors.
For people over 75 with an annual pension of up to €28,000, a voucher worth around €300 is planned to cover healthcare expenses not covered by the public system. The measure would affect roughly 5.5 million people, at an estimated cost of €1.6 billion.
There are also changes to rental taxation: the flat-rate tax on agreed-rent contracts (cedolare secca) would drop from 10% to 5%, falling to 1% if the tenant is no older than 35. Commercial properties would see a new 21% rate introduced.
The package also includes a permanent exemption from the car tax (bollo) for small and medium-power vehicles, along with the option to purchase personalized license plates.
For businesses, the government has confirmed the tax credit for the single Special Economic Zone (Zes) in southern Italy, the hyper-depreciation scheme — now extended to digital investments — and the 120% super-deduction on labour costs. Incentives on productivity bonuses, pay rises linked to contract renewals, and the bonus for working mothers all remain in place.
The funding sources cited include roughly €14 billion from EU fiscal flexibility, more than €5 billion from a levy on banks and insurers (excluding cooperative and popular banks), and around €1 billion in cuts to ministry budgets. Additional revenue is expected from energy companies, the gaming sector and the Tobin tax.
The parliamentary process will begin in the Chamber of Deputies, with examination by the Budget Committee, hearings and debate on amendments. The text will then move to the Senate: any changes would require a further reading in the Chamber before the President of the Republic can sign it into law.
