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Italy's Budget Clears Confidence Vote as Government Backs Review of Pension Age Rise

Ministers signaled any changes would be weighed in 2026 given tight public finances.

Overview

  • The Chamber of Deputies approved the confidence motion on the 2026 budget by 219 to 125, with the final vote scheduled for today.
  • The Lega’s order of the day to evaluate suspending the planned step-up in pension eligibility passed with a favorable government opinion.
  • The phased increase at issue raises requirements by one month from 2027 and three months from 2028 under the current budget framework.
  • Economy Minister Giancarlo Giorgetti noted the government already reduced the automatic rise at a cost of over one billion euros and said further decisions will be assessed in 2026.
  • The government also agreed to study a youth flat tax and consider restoring an incremental flat tax for 2026 returns, both contingent on available fiscal space, as opposition parties decried the plan’s growth outlook and protests continued during the orders-of-the-day session.