Overview

• The Council of Ministers approved the new public finance plan, setting the 2025 deficit at 3% of GDP and revising growth to 0.5% in 2025 and 0.7% in 2026.
• Top priorities include a two‑point IRPEF cut for incomes between €28,000 and €50,000, family measures, and a new tax‑debt settlement reportedly scaled to 8 years or 96 installments.
• The blueprint programs higher defense spending of about 0.15% of GDP in 2026, 0.3% in 2027 and 0.5% in 2028, contingent on a formal exit from the EU excessive deficit procedure expected in spring 2026.
• Financing choices remain open, with the government seeking a €2.5–3 billion contribution from banks, negotiating the scope of the settlement, and weighing spending adjustments.
• Press reports cite an unconfirmed ~€8 billion margin from improved primary net spending; the document has been sent to Brussels and is scheduled for Senate debate on 9 October.