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Italy's 2026 Budget Heads to Final Confidence Vote in the Chamber on December 30

The sealed package balances tax relief with new revenues to target a sub‑3% deficit next year.

Overview

  • Lawmakers begin the final sprint with a confidence motion in the Chamber, floor debate from December 28 and the definitive vote scheduled for December 30 by early afternoon.
  • The plan totals €22.3 billion in net measures for 2026, combining €7.9 billion in tax cuts with €14.4 billion in additional spending, with impacts tapering in 2027–2028.
  • Income tax relief cuts the second IRPEF bracket rate to 33% for incomes between €28,000 and €50,000, with benefits phased out above €200,000.
  • A new nine‑year “rottamazione” allows settlement of collection notices for debts from 2000–2023 in 54 bimonthly instalments, alongside extended home renovation and energy deductions through 2026 and a boosted bonus for working mothers.
  • Revenue offsets include doubling the Tobin tax, a €2 levy on small non‑EU parcels, higher IRAP for banks and insurers, increased fuel and tobacco excises, ministry spending cuts, and about €5 billion from PNRR reprogramming.