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Italy Wins Budget Confidence Vote as Government Backs Review of Pension-Age Hike

Next steps depend on available fiscal space.

Overview

  • The Chamber of Deputies approved the government's confidence on the budget by 219 votes to 125, with the final vote scheduled for the same day.
  • A Lega-backed order of the day passed directing the executive to consider suspending the planned rise in pension eligibility, which would add one month in 2027 and three months in 2028.
  • The government gave a favorable opinion to the pension measure but framed any suspension as contingent on public finance constraints.
  • Economy Minister Giancarlo Giorgetti said the automatic increase had already been reduced and funded with over €1 billion, with any further changes to be weighed in 2026.
  • The government also agreed to evaluate a youth flat tax and a revival of the incremental flat tax for the 2026 tax year, while other center-right orders of the day covered fertility information efforts, flood-related civil actions, and protections for hairdressing businesses.