Overview

• The Council of Ministers approved the Documento programmatico di finanza pubblica projecting GDP growth of 0.5% in 2025 and 0.7% in 2026 with the deficit at 3% in 2025.
• Parliament will examine the document on October 9, the draft budgetary plan is due in Brussels by October 15, and the budget bill is slated to reach Parliament by October 20.
• Core budget priorities include cutting the IRPEF second bracket to 33% for incomes between €28,000 and €50,000, additional funding for the national health service, family measures, and pro‑investment policies.
• The plan estimates interventions of roughly €16 billion (about 0.7% of GDP), financed by a mix of new revenues and spending measures, with about 60% of the coverage from expenditure adjustments.
• Defense outlays are programmed to rise by 0.15% of GDP in 2026, 0.3% in 2027 and 0.5% in 2028, totaling about €11–12 billion, contingent on Italy’s exit from the EU deficit procedure, while options like a €2.5–3 billion bank contribution and a scaled tax‑debt settlement are still under negotiation.