Italy Approves 2027 Budget Worth 26 Billion Euros, Including IRPEF Changes

The Italian Council of Ministers approved the 2027 Budget Law, a package worth approximately 26 billion euros. The measures target families, workers, and motorists, with a focus on continuing interventions from the previous budget that were set to expire at the end of 2026.

Prime Minister Giorgia Meloni stated that the government confirmed all interventions from the previous budget, a package valued at around 9 billion euros. She emphasized that the work was carried out with serenity and common sense, prioritizing citizens' needs.

“With this budget law we confirm all the interventions included in the previous budget.”

A key tax change extends the 33% IRPEF intermediate rate to incomes up to 55,000 euros. This threshold is lower than the summer target, and the maximum annual benefit for taxpayers is estimated at 500 euros.

The budget also includes a structural exemption from car tax for small and medium-power vehicles. Additionally, citizens will be able to request personalized license plates, and a new pension fund for newborns has been introduced.

A decree aimed at reducing electricity and gas bills has been postponed. The budget bill will now undergo parliamentary examination before receiving final approval.

The government's priorities remain family, birth rates, businesses, purchasing power, and health. The executive chose to concentrate resources on these specific areas rather than distributing them through generalized interventions.

The budget bill was approved on October 28, 2026, and will be sent to the Chamber of Deputies after the General State Accounting Office's review.