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Italy's 2026 Budget Clears Confidence Vote, Final Passage Set for Today

Orders of the day back a review of pension-age hikes, leaving politically charged changes to next year.

Overview

  • The government won the confidence vote in the Chamber of Deputies by 219 to 125 on a roughly €22 billion package.
  • A League-backed order of the day approved with a favorable government opinion urges reconsideration and possible suspension of the scheduled pension-age increases now staggered to +1 month in 2027 and +2 months in 2028.
  • The executive also agreed to evaluate a youth flat tax and to consider restoring an incremental flat tax for 2026 income declarations, both via nonbinding orders.
  • Targeted business measures include about €3.5 billion for manufacturing, expanded Industry 4.0 incentives and hyper-depreciation, with a Forza Italia order favorably received to reassess limits so benefits can cover EFTA and G7 goods.
  • After a night session examining 239 orders of the day, opposition parties criticized the fast-track process as sidelining Parliament, with the final vote scheduled for late morning.