Overview

• Center-right leaders convened Sunday to settle remaining parameters of the DPB and budget so the Council of Ministers can approve them on Tuesday.
• The plan includes a two-point cut to the second IRPEF bracket, lowering the rate from 35% to 33% for incomes between €28,000 and €50,000 at an estimated cost of about €2.5 billion with a maximum annual benefit of roughly €440.
• The government is preparing a new tax-settlement scheme with repayments spread over nine years in 108 installments, with proposals under discussion that would tighten eligibility and could include a 5% upfront payment.
• A selective freeze of the three-month rise in the pensionable age from 2027 is being shaped to protect specific cohorts, with reports indicating a full stop only for those who turn 64 in 2027.
• The executive is negotiating a concerted contribution from banks, and possibly insurers, using options such as deferred use of DTAs to raise low‑billion‑euro resources, as businesses press for structural investment incentives, a selective extension of renovation tax breaks, renewal of the IRES incentive, and an additional €2.5 billion for the national health service.