The 2027 Budget is worth 23.5 billion euros and focuses on support for families, with welfare interventions, and aid for businesses.
To finance the measures, the Government is also looking to the banks, which should put around 5 billion euros on the table. Insurance companies, a new squeeze on ministerial spending and the gaming sector should also contribute to coverage.
Budget 2027, measures planned for families and businesses
The skeleton of the 2027 Budget is contained in the Dpb (Programmatic Budget Document), transmitted on the night between Wednesday 14 and Thursday 15 October to the European Commission and the Italian Parliament.
The document, approved by the Council of Ministers, anticipates some of the measures of the future Budget law, but must be taken for what it is: a draft, a declaration of intent yet to be confirmed by the coverage test. Italy is in fact still negotiating with the EU on the flexibility of public finances in order to cover energy and defense expenditure.
The Dpb indicates as a priority the protection of the purchasing power of families, with particular attention to the most fragile ones, and support for businesses (suffering due to high energy costs) and investments.
Support for the security of energy supplies is also envisaged, with greater contributions to investments in photovoltaic systems.
The framework also includes interventions for public infrastructures, with particular attention to railways, schools, hospitals, universities, sports facilities and hydroelectric basins.
Energy and defense, negotiation with the European Union
The definition of the maneuver is linked to the Italian request to activate the national safeguard clause, indicated at around 14 billion in total for 2027: 7 billion allocated to energy and another 7 to defence. The issue is expected to be addressed at the Eurogroup meeting on 9 November.
The Government must also deal with European rules on public finances and with the need to identify interventions capable of responding to energy prices without further fueling price pressures. Italy is currently pressuring the EU to find a solution to the price of gas, on which the price of electricity also largely depends. Negotiations have started and are already at a good stage, with only the final technical details missing. According to what has been leaked, the price of gas (which has recorded +172% in recent months due to the Hormuz crisis) should settle in a range between 55 and 65 euros per MWh.
The hypotheses discussed also include greater support for investments in the energy efficiency of buildings, with an increase in the Ecobonus to 65%. For 2026, current legislation provides for an ordinary deduction of 36% for subsidized interventions, raised to 50% for interventions carried out on the main residence by owners of property or other real right of enjoyment. In the background, another front remains open with the EU, that of green houses, for which Italy is under infringement proceedings.
Irpef, flat tax and flat tax
We are then aiming for a 5% flat tax on salary increases for employees up to 35 years of age. And to a flat tax on contract renewals, on night and holiday work and on productivity bonuses. And, finally, to another flat tax for VAT numbers, with a hypothesized threshold of up to 100,000 euros.
Then there is talk of a flat rate tax of 5% on long-term rentals with agreed rent (currently it is 10%). And the aim is to make the car tax cut structural.
The Irpef rate of 33% would finally be extended to the limit of 60,000 euros gross per year. Now the limit is set at 50,000 euros.
Pensions
The social security issue concerns the revaluation of pensions to recover the impact of inflation. The League then pushes for the possibility of leaving at 64 but with the contributory method only.
