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Italy’s 2026 Budget Heads to Final Chamber Vote on Dec. 30 Under Confidence Motion

The coalition pushes an unchanged €22 billion plan pairing tax relief with debt settlement alongside new charges.

Overview

  • The government will ask the Chamber for a confidence vote to pass the Senate-approved text without amendments, avoiding a return to the upper house and a provisional budget.
  • The package exceeds €22 billion and cuts the second IRPEF bracket to 33% for incomes between €28,000 and €50,000, yielding pay increases up to roughly €440 a year.
  • A new ‘rottamazione’ allows settlement of collection files from 2000–2023 over nine years in 54 bimonthly installments at a 3% rate, with adhesion open until April 30, 2026.
  • Labor measures include a 5% flat tax on pay rises from collective bargaining renewals in 2024–2026 for private employees earning up to €32,000, plus a one-year extension of 50% home renovation and energy-efficiency deductions.
  • New revenue steps include a €2 charge on sub-€150 parcels from non‑EU countries and a January doubling of the financial transaction tax to 0.4%, with a higher levy on high‑frequency trades.