The Council of Ministers approved the 2026 Budget Law after a meeting that lasted just over an hour. Prime Minister Giorgia Meloni, during the press conference at the end of the meeting, spoke of a compact majority that managed to bring home important results. This year’s budget, with a reduced budget of only 18.7 billion, focused on the “big priorities” of the previous ones: family, Irpef cut and support for businesses and the healthcare sector.
The idea, however, is that many promises made during interviews and public interventions have not been kept. These also include flagship measures proclaimed several times by the majority parties. The most painful chapter remains that of pensions.
Banks’ contribution and coverage
The Prime Minister made it known that this is:
a serious maneuver that focuses on the same major priorities as the previous ones: family and birth rate, tax reduction, support for businesses and healthcare.
To cover the expected expenses, a significant portion will arrive from banking and insurance institutions after long discussions with the banks and, according to what the press has reported in recent days, also clashes in the majority.
The Head of Government commented regarding the voluntary contribution of banks and insurance companies:
We found an availability that was not obvious.
The largest share of coverage, underlined Giorgia Meloni:
it comes from spending cuts by the Prime Minister and the Ministries.
Retired at 67 years and 3 months but gradual change
One of the reforms most awaited by Italians concerns the halt to the increase in the retirement age, with new increases from 2027. Not even this year, despite electoral promises, has the Government found a way to defuse the Fornero law.
For the two-year period 2027-2028, a gradual increase in the retirement access requirements linked to the adjustment of life expectancy is expected:
- in 2027 you will retire at 67 years and 1 month;
- in 2028 you will retire at 67 years and 2 months;
- in 2029 you will retire at 67 years and 3 months.
However, the adjustment will not concern heavy and tiring work.
The pension chapter should be worth around 460 million euros in 2026, 1.8 billion in 2027 and 1.15 billion in 2028.
ISEE reform and bonuses for families
Around 3.5 billion have been allocated for the family and the fight against poverty.
Among the measures immediately mentioned by Giorgia Meloni in the press conference is the bonus for working mothers, which goes from 40 to 60 euros per month, falling within a chapter dedicated to the family worth approximately 1.6 billion euros.
The first house is then excluded from the ISEE calculation, with the limit of the cadastral value. The revision of the Equivalent Economic Situation Indicator will also have an effect on the equivalence scales, with overall effects of almost 500 million euros per year.
Bonuses for workers
The Irpef cut for the middle class, with a cost of around 2.8 billion euros, will take place. The second Irpef rate will go from the current 35% to 33%, with effects equal to approximately 9 billion euros over the three-year period.
Confirmed, as anticipated by HereFinancealso the tax relief on productivity bonuses, weekend and night shifts with 1.9 billion invested in wages. 2 billion will be allocated to encourage the adjustment of salaries to the cost of living.
Still on the subject of work, to combat poor employment, incentives are provided for the renewal of contracts for incomes up to 28 thousand euros and a 5% rate will be applied to a portion of the increase for those signed both this year and next.
Healthcare funds
The new budget allocates 2.4 billion euros for 2026 and 2.65 billion for the following two years to the healthcare sector.
They are added to the refinancing already foreseen last year with the Budget Law, equal to:
- 5 billion for 2026;
- 5.7 billion for 2027;
- around 7 billion for 2028.
The funds will also serve to ensure more hiring of doctors and nurses.
Funds intended for businesses
Businesses, the Prime Minister further explained, are destined for 8 billion in investments and super and hyper amortization with permitted investments amounting to 4 billion. Resources that could increase with the medium-term review of cohesion policy.
For new ones, a super deduction of 120% of the cost of labor is introduced, which rises up to 130% for some more fragile subjects. The hiring bonus is also added to the blocking, for the umpteenth consecutive year, of the sugar tax and the plastic tax for the whole of 2026.
The Nuova Sabatini is also refinanced, the benefit intended for micro, small and medium-sized enterprises to facilitate investments in capital goods such as machinery, equipment, digital technologies, software, hardware.
