Overview

• Economy Minister Giancarlo Giorgetti outlined a roughly €16 billion package that keeps deficit reduction on track, saying the deficit-to-GDP ratio should fall below 3% from 2026.
• A new ‘rottamazione quinquies’ is being drafted with 96 equal instalments over eight years and minimum payments around €50, with exclusions for serial non‑payers and possible readmission of those who previously lapsed; the rule for losing the benefit and a proposed 5% down payment for large debts remain under discussion.
• The plan includes a cut of the 35% IRPEF bracket to 33% for incomes between €28,000 and €50,000, a selective extension of the 50% home-renovation deduction, support for paid parental leave, and a narrowly targeted freeze of the three‑month pension age increase for specific categories.
• Giorgetti said the government will seek a concerted, non‑punitive contribution from banks to help finance the measures, paired with tighter checks on state loan guarantees.
• Bank of Italy and the Parliamentary Budget Office cautioned that defence outlays are only partly embedded and that near‑full use of available fiscal space heightens risks; Giorgetti said defence will be funded via an EU safeguard once Italy exits the excessive‑deficit procedure, not by cutting social or health spending.