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Giorgetti Tempers IRPEF Cut and Rottamazione Plans as Geopolitics Squeeze Italy’s Budget

Final choices will come after ISTAT’s post‑22 September national accounts clarify available resources.

Overview

  • The economy minister said tax relief for the middle tier and a new tax‑debt settlement remain objectives but must be ordered by priority given higher defense and Ukraine‑related costs.
  • Giorgia Meloni reiterated that the forthcoming budget will focus on the middle class, with the government rejecting the need for a corrective package.
  • The flagship IRPEF idea would lower the second bracket from 35% to 33% and extend it to €60,000, an operation estimated at roughly €4 billion.
  • A fifth rottamazione is under evaluation with long installment plans and likely selective access, as Treasury officials caution against broad write‑offs.
  • Coalition dynamics continue, with Forza Italia advocating middle‑income tax relief and bonus detaxation while Matteo Salvini presses to revise ISEE rules to change how public benefits are allocated.