Overview

• The Italian Senate approved the 2025 budget, which includes €30 billion in tax cuts and social security contributions, by a vote of 108 to 63.
• The budget seeks to lower Italy’s fiscal deficit to 3.3% of GDP in 2025, with a commitment to meet the EU’s 3% ceiling by 2026, following pressure from Brussels.
• Key measures include tax cuts for low- and middle-income earners, a €1,000 bonus for parents of newborns, and limited increases in healthcare spending.
• Critics argue the budget prioritizes political projects, such as a €15 billion bridge to Sicily, over essential services like education, healthcare, and public transport.
• Italy’s economic challenges include slowing growth, high public debt projected to rise to 137.8% of GDP by 2026, and slower-than-expected disbursement of EU recovery funds.