Overview

• The government’s Dpfp lowers growth projections to 0.5% for 2025 and 0.7% for 2026 while fixing the 2025 deficit at 3% of GDP to align with EU rules.
• The forthcoming budget will finance roughly €16 billion per year, with about 60% covered by spending measures and the rest from revenues, according to the Treasury.
• A key proposal targets the middle bracket of IRPEF, trimming the rate from 35% to 33% for incomes between €28,000 and €50,000, alongside additional funding for the national health service and family support.
• The plan sketches a defence outlay increase of about €11–12 billion cumulatively in 2026–2028 (0.15%, 0.3% and 0.5% of GDP), conditional on Italy exiting the EU excessive‑deficit procedure.
• The document goes to Brussels and Parliament with Senate debate set for 9 October, as talks continue on a €2.5–3 billion bank contribution and the terms of a new tax‑debt settlement.